Tongyi Sale Closes

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Shell announced yesterday that it has closed on the sale of its 75 percent stake in Tongyi Lubricants to Carlyle Group and Huos Group.

The transaction was first announced in August, and the closing completes Shells sell-off of an interest that it acquired nine years ago.

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Huos Group is a diversified Chinese company whose chairman, Huo Zhenxiang, founded Tongyi in 1993. Huos Group retained a 25 percent stake in Tongyi when Shell bought into the business. Carlyle is a United States-based investment firm.

The companies have not disclosed the details of the transaction, but Carlyle spokesman Brian Zhou confirmed yesterday that Carlyle is now the majority stakeholder in Tongyi. August statements about the transaction suggested that Huo did contribute to the purchase so that its interest has increased above 25 percent.

Huo has claimed that Tongyi is the top-selling domestic engine oil brand in China.

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Business    Mergers & Acquisitions