The European Commission on Jan. 15 approved Lukoils acquisition of Austrian energy group OMVs non-retail lubricants business, including a 35,000 tons per year blending plant.
Under the EU merger regulation, the commission cleared the acquisition, the European Unions executive body said in a Jan. 16 news release.
The commission concluded that the proposed acquisition would not raise competition concerns
given the parties moderate combined market positions resulting from the proposed transaction, it said. OMVs non-retail lube business includes a lubricant production [plant] and distribution of automotive and industrial lubricants to non-retail customers.
OMVs 35,000 tons per year lubes plant is located near the Austrian capital of Vienna, and it supplies products to several countries in West, Central and Southeastern Europe. LLK International bought the plant and OMVs distribution operations in Germany, Austria, the Czech Republic, Slovakia, Hungary, Slovenia, Serbia, Romania and Bulgaria. It also bought the rights for use of OMVs Bixxol motor oil brand.
LLK is the Russian oil major Lukoils lubricant arm
The deal between the both companies was signed in June 2013. LLKs main strategy is further
development of its lubricant business on European soil, Lukoils president Vagit Alekperov
said about the deal last year. Favorable geographical position in relation to the foreign OEMs and enterprises, the developed distribution infrastructure in Europe, its modern industrial capacities, unique scientific know-how and extensive professional experience of the workforce – those are the most significant factors that swayed our decision, he said.
The deal is also important for the Russian oil major because it can achieve synergies with LLKs
Austrian operations and its operations in Romania and Finland. The deal will optimize lubricant supply to the foreign partners, it can enhance Lukoils scientific and technical opportunities in new formulations development area, and provide sales growth, the company stated in June.
In Europe, LLK operates a 30,000 t/y blending plant in Ploiesti, Romania, and a 32,000 t/y plant in Hamina, Finland. The company is the leading lubricants marketer in Russia. In 2012 it held 49 percent of the market, and it sold 1.1 million tons of base oils and finished lubricants, according to InfoTEK Moscow consultancy.