Shell and ExxonMobil are exploring a sale of Infineum, their 50-50 lubricant and fuel additives joint venture, in a deal that could value the business at about U.S. $8 billion, according to press reports. The owners have appointed Bank of America to advise on the process, which remains at an early stage and may not lead to a transaction, according to people familiar with the matter.
Infineum is one of the “big four” developers of lubricant additive packages, which also include Chevron Oronite, Afton Chemical and Lubrizol.
Founded in 1999 and headquartered in Oxfordshire, United Kingdom, Infineum develops additives for fuels and lubricants and reportedly generates $700 million to $800 million in annual earnings before interest, taxes, depreciation and amortization. It says its products are used in a third of vehicles worldwide and 70% of electric vehicles.
Shell has said it does not consider itself the “natural owner” of its chemicals portfolio and wants to reduce its exposure by 2030.
In 2024, Infineum rebranded as a specialty chemicals company and reorganized into two business units, one focused internal combustion engines and the other on electrified drivetrains and battery-related projects.
“I wonder whether this is market testing because of the calming of the ICE phase-out mania,” Trevor Gauntlett, an industry consultant and Shell alumni, told Lube Report. “There’s an opportunity to generate cash early.”