Chevron to acquire NEXBASE brand and business from Neste
Chevron Global Energy Inc, a wholly-owned subsidiary of US-headed Chevron Corporation, one of the world’s largest integrated energy companies has announced that it signed an agreement with Finland-headed oil refiner and renewable fuels producer Neste Oyj to acquire its "NEXBASE" brand, associated qualifications, and approvals, and related sales and marketing business.
According to Neste, the agreement covers a combination of share and asset deals forming Neste’s entire global base oils business, its premium brand NEXBASE, all formulation coverage associated with the brand, as well as a global marketing and distribution platform.
The parties have also agreed on a long-term offtake for Neste’s base oils supply from Porvoo, Finland, and are committed to ensuring a seamless transition to NEXBASE customers and all other stakeholders including employees.
I want to thank our people in the base oils business who have been known for their pioneering spirit throughout the years. They have built the foundation for Neste to become one of the world’s leading producers of Group III base oils, and we can be extremely proud of that. Chevron being a leading manufacturer of base oil products is, therefore, an excellent company to nurture and develop the NEXBASE base oils business further, said Peter Vanacker, President, and CEO, Neste.
Neste’s base oils have been produced in Porvoo, Finland and by a base oils joint venture with Bahrain Petroleum Company (Bapco) and Nogaholding in Bahrain. Neste has also agreed to exit its base oils joint venture with Bapco and Nogaholding, and will no longer have a presence in Bahrain.
We expect the addition of the NEXBASE brand and associated business to provide value to our customers through improved logistics, reduced complexity, and optimized solutions. This acquisition is poised to satisfy our customers’ growing needs to meet increasingly stringent lubricant standards driven by evolving vehicle specifications and maintains the technology leading positions of our past base oil investments. Coupled with our investment in Novvi to bring renewable base oils to the market, this acquisition positions Chevron to be the supplier of choice to meet customers’ needs both today and into the future, said Alicia Logan, General Manager of Chevron Base Oils.
The transaction, the value of which will not be disclosed, is expected to close by the end of Q1 2022, subject to customary antitrust regulatory approvals and other closing conditions.