GP Global Acquires Nigerian Blender


GP Global Acquires Nigerian Blender

GP Global acquired the lubricants assets of Lagos, Nigeria-based Grand Petroleum. A GP Global executive told Lube Report yesterday the acquisition is part of a bid to expand its lubricant and base oil operations.

Grand Petroleum, part of the Nigerian industrial conglomerate Nosak Group, operates a 50,000 tons per year lubricant blending plant in Lagos. The acquisition includes Grand Petroleum’s distribution network and the HiSpeed lubricant brand. Terms were not disclosed.

The acquisition is GP Global’s first foray into the African lubes market since its acquisitions of Ipol Lubricants and Mag Lube in 2014. The company also has manufacturing partnerships with Repsol and Cepsa and recently announced the construction of a U.S. $14 million lube blending plant in India.

United Arab Emirates-based GP Global chose Grand Petroleum as an acquisition target for a number of reasons, Sudip Shyam, the company’s global head for lubricants and base oils, told Lube Report. “Nigeria is a popular market, and there’s a clear opportunity for growth,” he said in a phone interview. “A lot of base oils are being used there. We wanted to be close to Lagos, and there aren’t many facilities there. HiSpeed is a popular product in the automotive segment there.”

In a press release issued April 15, GP Global said it will also use its new facilities to store and distribute base oils. Shyam said the company already distributes base oil in West Africa. “Lubricants has been on the agenda for Africa for us, and base oils is critical to that too,” he said. The Grand Petroleum Lagos facility houses storage tanks with a capacity of 6,000 kiloliters.

“This is a strategic acquisition by GP Global that will consolidate our presence in key African markets,” Ajay Pandey, GP Global’s chief operating officer for Nigeria, said in the press release. “The strong manufacturing competencies that we gain through the acquisition of a wide range of lubricants, and the advantage we gain in base oil trade will add to our market share. With this acquisition, we aim to grow our business of oil and agricultural products as well as build a strong retail network in Africa.” GP Global operates retail outlets in Kenya and Uganda.

“Nigeria is one of the core markets for our lubricants and base oil business with a significant opportunity now opening up to expand our presence in Africa,” Shyam said. “We have already built a strong lubricant market share in India and the Middle East. Through local manufacturing and a strong distribution network in Nigeria, the acquisition will position us as one of the fastest-growing global lubricants and base oil businesses.”

GP Global will take over operations of the assets while retaining several members of the existing management team, according to the press release.

Shyam said GP Global’s goal is to produce 500 million liters (450,000 metric tons) of lubricants five years from now. The company sells industrial and automotive lubricants, process oils, transformer oils, greases and specialty oils.

Photo: anaova/Shutterstock

GP Global storage containers in Sharjah, United Arab Emirates. GP Global acquired the lubricants assets of Lagos, Nigeria-based Grand Petroleum.

Related Topics

Business    Finished Lubricants    Mergers & Acquisitions