Cepsa on Friday said it will acquire Chevrons automotive and industrial lubricants, fuels and aviation businesses in Spain. The price was not disclosed for the transaction, which will close after regulatory approvals.
Refiner Compania Espanola de Petroleos S.A. will acquire 100 percent of the share capital of Chevron Espana S.A., which has 135 employees.
The sale is a part of Chevrons global downstream restructuring strategy, Chevron said in a statement to Lube Report. We continue to focus our investments on markets where we are well positioned to deliver outstanding returns for our shareholders.
Cepsa will assume ownership of a lubricants blending plant in Valencia, and finished lubricants sales and marketing operations in Spain, excluding global lubricants accounts. According to Chevron, a short term brand license will allow Cepsa to switch over to its own brand. Chevron will retain its marine lubricants business in Spain.
Cepsa also assumes ownership of 62 Texaco-branded service stations in the Canary Islands, which the company said will make it a new player in retail marketing on the entire archipelago along the northwestern coast of Africa. It will also get Chevrons aviation supply agreements at 11 airports.
Madrid, Spain-based Cepsa has a base oil plant in San Roque with 4,000 barrels per day of API Group I capacity. The main shareholders of Cepsa include Total S.A. with nearly a 49 percent stake and IPIC with about 47 percent. Other shareholders own the remaining 4 percent.
According to Parsippany, N.J.-based Kline and Co., Spains Repsol YPF is the leading finished lubricants supplier in Iberia, which includes Spain and Portugal. It is followed by Cepsa, BP, ExxonMobil, Total, Shell and Portugals Galp, which also reports a presence in Spain.