Global energy conglomerate Shell Group has sought the Competition Commission of India’s (CCI) approval for its proposed acquisition of Raj Petro Specialities Private Limited. The deal involves Shell Deutschland GmbH and Shell Overseas Investments B.V. acquiring 100 percent equity in Raj Petro, aiming to enhance operational efficiency and improve customer offerings.

Details of the Acquisition

Shell Deutschland GmbH (Acquirer 1) and Shell Overseas Investments B.V. (Acquirer 2), both subsidiaries of the Shell Group, have filed for regulatory clearance under the CCI’s combination regulations. The acquisition will bring Raj Petro under the Shell umbrella, leveraging its expertise in hydrocarbon-based speciality products to complement Shell’s expansive global portfolio.

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About the Parties

Shell Group operates across 70 countries, specializing in oil and gas exploration, renewable energy, and the manufacturing of high-performance lubricants. In India, it serves industries ranging from automotive to industrial manufacturing.

Raj Petro Specialities is a leading manufacturer of petro-speciality products, including lubricants for sectors such as pharmaceuticals, energy, and agriculture. Its portfolio includes products like transformer oils, hydraulic oils, and industrial greases, catering to both domestic and international markets.

Market Implications

The proposed deal reflects horizontal overlaps in the lubricant sector, with the parties operating in markets like motor oils, industrial greases, and transformer oils. The CCI has been provided alternate definitions for relevant markets to facilitate its assessment. These include broad categories such as the overall lubricants market in India and narrower segments like passenger car motor oils and rubber process oils.

Additionally, a potential vertical overlap exists concerning the supply of base oils—a key raw material for lubricants. Shell, a global producer of base oils, supplies these to its subsidiaries and competitors in India, while Raj Petro uses them for blending finished products.

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Parties’ Submission

The parties contend that the combination poses no competition concerns and have requested that the definition of the relevant market be left open. They argue that the deal will not adversely impact competition but instead foster efficiencies and better product offerings.

Next Steps

The CCI’s nod is pivotal for the deal, as it will set a precedent for how global giants expand their footprint in the Indian petrochemical and lubricant markets. If approved, the acquisition could enhance market competitiveness while providing a broader product range for Indian consumers.

The Shell-Raj Petro deal represents a strategic move in India’s evolving energy and petrochemical landscape. The CCI’s decision will play a critical role in shaping the future of the sector and determining how global and domestic players coexist in this competitive market, economy watchers said.