Shell seeks CCI approval for Raj Petro acquisition
Shell has filed for approval from the Competition Commission of India (CCI) to acquire a 100% equity stake in Raj Petro Specialities Private Limited. “We can confirm that we have reached an agreement to acquire Raj Petro Specialities from the Brenntag Group. The transaction is subject to regulatory approval,” according to a Shell spokesperson.
The Competition Commission of India is a statutory body established under the Competition Act, 2002, to promote and sustain competition in the Indian market, prevent anti-competitive practices, and protect the interests of consumers. It plays a vital role in ensuring fair competition across industries, fostering economic efficiency, and encouraging innovation.
Shell Deutschland GmbH and Shell Overseas Investments B.V., both subsidiaries of the Shell Group, have jointly sought regulatory clearance under the CCI’s combination regulations, rules and guidelines that govern the regulation and approval of mergers, acquisitions, amalgamations, and other combinations.
Officially known as Shell plc, Shell Group is one of the largest multinational energy companies in the world and the global leader in the lubricants market. Headquartered in London, United Kingdom, Shell is involved in nearly all aspects of the energy industry, from oil and gas exploration and production to renewable energy solutions and cutting-edge technologies. In India, Shell serves industries such as automotive, pharmaceuticals, and industrial manufacturing. By bringing Raj Petro under the Shell umbrella, the company intends to leverage Raj Petro’s expertise in hydrocarbon-based speciality products to enhance its global portfolio.
About Raj Petro Specialities
Raj Petro Specialities Pvt Ltd, founded in 1957, is a prominent manufacturer of petro-speciality products, including transformer oils, industrial greases, and hydraulic oils, headquartered in Mumbai, India. Its products cater to both domestic and international markets, making it a strategic acquisition for Shell. The company has established a global presence, serving business partners in approximately 100 countries.
In 2018, Raj Petro entered into a joint venture with Brenntag, a global market leader in chemical distribution. This strategic partnership has enhanced Raj Petro’s market position, enabling it to leverage Brenntag’s extensive distribution network and industry expertise.
The company operates two state-of-the-art manufacturing plants located in Chennai and Silvassa, with a combined production capacity of 350,000 metric tonnes per annum.
Raj Petro’s product portfolio is diverse, catering to various industries including power and energy, personal care, tyre and rubber, food and pharma, construction and mining, chemicals and petrochemicals, engineering, petroleum and offshore, textiles, steel and metal, transport, automotive retail, agriculture, metalworking, and general engineering. Key product lines include transformer oils (ELECTROL), white oils (RAJOL), petroleum jellies (RAJELL), process oils (RAJPROL), waxes (RAWAX), synthetic base fluids (STANSOL), premium automotive lubricants (ZOOMOL), industrial oils and fluids (KYROS), high-performance lubricants and food-grade lubricants (ONWO), and agrispray oils (DURATEK, KELEOL, KYROS E3).
Market implications
The acquisition reflects overlaps in the lubricants sector, with Shell and Raj Petro operating in markets such as motor oils, industrial greases, and transformer oils. The transaction also involves a vertical overlap, as Shell produces base oils—a critical input for lubricants—which Raj Petro uses to manufacture its products.
The parties have argued that the acquisition poses no competition concerns and will enhance efficiencies and product offerings. The CCI’s decision is pivotal, not only for this deal but also as a benchmark for global companies expanding in India’s petrochemical and lubricant sectors.
