Shell signs agreement to acquire PANOLIN’s ECL business
Wholly owned Shell plc subsidiaries in Switzerland, the UK, the US and Sweden have entered into agreements to acquire the environmentally friendly lubricants business of the PANOLIN Group.
The transaction includes the PANOLIN brand, ECL product formulations, intellectual property, technical expertise and technology, international customer base and product portfolio – for hydraulics, gears, universal transmission oils for tractors, biodegradable motor oils (HDEO), turbine oils, chainsaw oils and greases for machine lubrication, including major OEM approved products.
ECLs are biodegradable lubricants and can contribute to a more sustainable future, providing better protection for wildlife and ecosystems when in contact with the environment, compared to conventional lubricants. They enable customers to reduce the risks associated with operating in sensitive environments. The global ECL market is expected to witness significant growth over the coming years.
Once the transaction is completed, Shell will manufacture, distribute and market the PANOLIN portfolio of ECL products alongside its established Shell Naturelle branded products. The acquisition will strengthen Shell’s presence in the mining, construction, agriculture, renewable energy, hydropower and offshore wind sectors.
Shell plans to fully integrate the business into its global lubricants business within two years of completion, in line with Shell’s Powering Progress strategy to accelerate the transition to a net zero emissions energy business by 2050.
Machteld de Haan, Global Executive Vice President of Shell Lubricants, said: “We are entering into this strategic acquisition to increase our presence in the global industrial lubricants market, through differentiated and value-added propositions for our customers. Once complete, the acquisition will allow us to complement our existing range of sustainable products in response to growing customer demand. »
All PANOLIN staff currently supporting the ECL business in Switzerland, UK, US and Sweden are expected to join Shell.
Subject to regulatory clearance and satisfaction of closing conditions, the agreement is expected to close in early 2023.
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