Shell and Exxon Mobil are exploring an $8bn sale of Infineum, their 50:50 UK chemicals joint venture based in Oxfordshire. The business, founded in 1999, generated $700mn-$800mn in annual EBITDA and is a leader in manufacturing fuel and lubricant additives sold in 90 countries. The owners aim to attract private equity interest, though the process remains in early stages.
This move aligns with Shell's strategy to refocus on core oil and gas operations, following its recent $16.4bn acquisition of Canadian shale producer ARC Resources. The potential sale comes after BP's $10bn disposal of Castrol last year. Lubricants firms face pressure from the rise of electric vehicles, though hybrid growth may limit demand erosion.
Global base oil production has increased, raising oversupply concerns. Infineum recently restructured into two units focusing on electrification and e-fluid technology for electric cars.
Source: Financial Times Companies · Summarized by HeadlinesBriefing