FUCHS PETROLUB AG, Mannheim, one of the world's leading lubricant producers, has decided, in view of the planned merger of the refining and marketing operations of SHELL (GERMANY) and DEA, to agree with DEA to terminate the joint venture FUCHS DEA SCHMIERSTOFFE founded in 1998. In exchange for shares in a German FUCHS subsidiary, the former FUCHS MINERALOELWERKE, DEA had then contributed its lubricant business to this company.
This means that on December 31, 2001, DEA will withdraw from FUCHS DEA SCHMIERSTOFFE, which anticipates sales of just under Euro 280m for the current year.
DEA's settlement comprises transfer of the Hamburg-Grasbrook Division, which at the same time will constitute the basis for future supply of the DEA sales channels and the workshop business with lubricants under the DEA brand. No cash compensation above and beyond this will be made.
As from January 1, 2002, FUCHS PETROLUB AG will continue to run the former FUCHS DEA SCHMIERSTOFFE as a subsidiary (100 %) operating under the name of FUCHS EUROPE SCHMIERSTOFFE GMBH.
The future FUCHS subsidiary will continue to be headquartered in Mannheim. Shareholders' equity will be Euro 29m, and sales approx. Euro 250m. The production facilities of FUCHS EUROPE SCHMIERSTOFFE will be located in Mannheim and Kiel.
The new arrangement will enable FUCHS PETROLUB in future to combine its German lubricant business more closely with the operations already grouped together in FUCHS EUROPE for other Western European countries, where sales of Euro 344m are anticipated for 2001, thus creating concomitant integrational advantages and intensified synergies.
FUCHS EUROPE SCHMIERSTOFFE will continue to be one of the leading vendors on the German market, and maintain a strong position, not least for the factory fill of vehicles, and for industrial lubricants and specialty products.
The agreement is still subject to the merger project between SHELL and DEA actually being implemented, and to the termination of the joint venture FUCHS DEA SCHMIERSTOFFE being reviewed under German antitrust legislation.
Mannheim, December 21, 2001
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
D-68169 Mannheim
Tel.: +49(0)621/3802-104
The press release is also available on the Internet under www.fuchs-oil.de.