BP merges lubricants with Petrolub

BP Japan and Petrolub International are to merge their automotive lubricant businesses and create a new company called BP Castrol KK with combined total sales revenues of $180 million (JPY20 billion).

Petrolub International, which is publicly traded on the 1st Section of the Tokyo Stock Exchange, has been importing, manufacturing and marketing BP and Duckhams branded automotive lubricants since 1978 with BP holding a 31.54% interest in the company. However the Castrol lubricants business, which BP acquired in 2000, is currently operated by BP Japan.

Following the transaction, BP will own around 70% of BP Castrol KK, which will continue to be traded on the Tokyo stock exchange, and will also operate the new combined business. The parties anticipate completing the transaction, which requires shareholder approval, around the turn of the year.

Until such time as BP Castrol KK is formed, currently estimated to be around January 1, 2005, BP Japan and Petrolub will continue to operate their respective lubricants businesses as separate operations.