According to parent company PT Mitra Pinasthika Mustika, ExxonMobil has come to an agreement to buy its PT Federal Karyatama firm in a deal worth $436m.
PT Federal Karyatama is known for its Federal Oil brand, which is the market leader in Indonesia with a market share in excess of 20%. The firm claims that users of motorcycles in the country regard it as one of the most trustworthy lubricants available.
ExxonMobil is of course no stranger to lubricants. It already sells a wide range of premium lubricants, such as Mobil 1 Racing 4T for motorcycles, through its Mobil brand. It has also had a presence in Indonesia for over 120 years, with a current workforce of over 500, the vast majority of whom are Indonesian.
The acquisition appears to be oriented towards help the oil giant expand its lubrication business in the region. The president of ExxonMobil Fuels & Lubricants Company, Bryan Milton, said:
“This acquisition, combined with our existing premium Mobil lubricant brand, will help us continue to grow and better serve customers in Indonesia.”
In a statement, ExxonMobil said it plans to purchase PT Federal Karyatama in its entiret,y complete with a blending plant in Cilegon, Indonesia that is capable of producing 700,000 barrels per year. It will also acquire the Federal Oil brand. The company anticipates completion of the deal by the third quarter this year, if not sooner, although it must first gain approval from shareholders and governmental and regulatory bodies.