PETRONAS
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Media Releases - 2007

20/9/2007

PETRONAS ACQUIRES FL SELENIA SPA

PETRONAS has signed an agreement to acquire the entire interest of FL Selenia SpA from affiliates of US investment firm Kohlberg Kravis Roberts & Co. LP. for approximately €1 billion.
 
FL Selenia is Europe's largest independent producer and marketer of branded automotive lubricants and other functional fluids. Based in Italy, FL Selenia has operations across Europe, South America and the United States.
 
FL Selenia's product range includes lubricants, transmission, anti-freeze and functional fluids for automobiles, trucks, agricultural tractors and earth moving machinery as well as for other industrial equipment. The company's well-known brands include Selenia, Urania, Ambra, Akcela, Akros, Paraflu, Tutela and Arexons. FL Selenia's products are mainly positioned in the high value-added segment with the majority of its sales arising from innovative semi-synthetic and synthetic lubricants. FL Selenia also enjoys technical and commercial relationships with several major OEM partners, among which is the FIAT Group which includes FIAT Auto, Iveco, Case New Holland, and the Same Deutz-Fahr Group, that allow it to enhance the value of its brands and presence in European and international markets. FL Selenia's R&D and testing facilities are among the largest in Europe. FL Selenia is also in the business of distributing car-care products, parts and accessories in Italy.
 
PETRONAS views this acquisition as an exciting opportunity to create and add value for the Group and at the same time realize the global aspirations of its lubricants business.
 
FL Selenia's expertise and geographic focus is complementary with PETRONAS' existing lubricants business, which includes manufacturing, marketing and distribution of high-end lubricants in Malaysia and a host of other countries. PETRONAS' premium products are its range of synthetic lubricants SYNTIUM, which have been specially engineered using race-proven Formula One technology developed through the company's longstanding involvement in motor sports.
 
PETRONAS' lubricants business has also witnessed considerable growth and penetration of new markets in recent years, with SYNTIUM products currently available in China, India, Thailand, Japan, Indonesia, South Africa and Switzerland. In Malaysia, SYNTIUM products currently command a strong market share.
 
PETRONAS currently has an existing strategic alliance arrangement with FL Selenia where FL Selenia markets SYNTIUM in some parts of Europe while PETRONAS provides a similar service to FL Selenia's products to certain OEMs in China.
 
The acquisition of FL Selenia brings another strong brand to PETRONAS' business and adds critical mass to its lubricants markets in Europe, together with strong OEM relationships and world class R&D capabilities. This is expected to provide PETRONAS with a better position to further penetrate the high growth Asian lubricants markets.
 
The transaction is subject to regulatory clearances. The entire management and staff of FL Selenia will remain with the company to continue to deliver its quality products and to work closely with PETRONAS to optimise the synergistic benefits of the two entities.
 
Dresdner Kleinwort is acting as financial advisor to PETRONAS on this transaction.
 
Issued by:
Media Relations Department
PETRONAS

20 September 2007