Neste Corporation has signed an agreement to sell its existing base oils business to Chevron Corporation, one amongst the world's leading integrated energy companies. The agreement covers a mix of share and asset deals forming Neste's entire global base oils business. As a part of the divestment, the parties have also agreed on a long-term off take for Neste’s base oils supply from Porvoo, Finland. With the identical date, Neste has signed an agreement to exit its base oils venture with Bahrain Petroleum Company and Nogaholding.
“I want to thank our people within the base oils business who are known for his or her pioneering spirit throughout the years. they need built the inspiration for Neste to become one in every of the world’s leading producers of Group III base oils, and that we will be extremely pleased with that. Chevron being a number one manufacturer of base oil products is therefore a wonderful company to nurture and develop the NEXBASE base oils business further,” says Neste’s President and CEO Peter Vanacker.
Neste’s base oils are produced in Porvoo, Finland and by a base oils venture with Bapco and Nogaholding in Bahrain. The agreement with Chevron will cover Neste’s Porvoo base oils production volumes, its premium brand NEXBASE™, all formulation coverage related to the brand, similarly as a world marketing and distribution platform. In reference to the divestment, Neste is exiting the venture with Bapco and Nogaholding, and can now not have presence in Bahrain.
The parties are committed to making sure a seamless transition to NEXBASE customers and every one other stakeholders including employees. The parties have agreed that the transaction price shall remain confidential. The transaction won't have a fabric effect on Neste’s financial position. The completion of the divestment is subject to the approval of the competition authorities and customary closing conditions, with estimated completion date by the tip of Q1/2022. #yusufbhandarkar
