Global energy company Repsol Downstream Internacional S.A. has entered into a share purchase agreement with Singapore-based lubricant manufacturer and trader United Global Limited to acquire a 40% stake in its wholly-owned subsidiary United Oil Company for US$46.5 million.
Upon completion of the deal, United Oil and its subsidiaries (UOC Group) will become a joint-control entity of Madrid-listed Repsol, making it part of one of the top companies in the oil and gas industry. This places UOC Group in a strategic position for new growth opportunities by leveraging Repsol’s international brand presence to enhance its production and distribution, according to United Global in an exchange filing.
Repsol is principally engaged in the production and marketing of oil derivatives while UOC Group blends, manufactures and distributes lubricants. The joint venture will hence allow UOC Group to manufacture and supply Repsol’s brand of products across Singapore, Indonesia, Malaysia and Vietnam to accelerate its growth and increase its business volume.
This marks Repsol’s first venture into the Southeast Asian market.