By Rick Carew
HONG KONG -- Carlyle Group LP bought a majority stake in a
Chinese oil-lubricants business from Royal Dutch Shell PLC, giving
the private equity firm a rare deal for control of a company in
China's energy industry.
Shell, which is shedding assets across the globe amid low oil
prices, said in a statement Friday it is focusing on its own
lubricants brands within China. Shell didn't disclose the price it
received for the 75% stake in the Tongyi oil lubricants business
from Carlyle and Huo's Group, an entity controlled by Tongyi
founder Huo Zhenxiang. Shell had purchased its stake in Tongyi from
Mr. Huo in 2006.
"The lubricants industry is a growing market in China due to
increasing auto penetration," Carlyle Group managing director
Herman Chang said in the statement.
The Wall Street Journal reported in December that Shell was
shopping the asset, which had drawn interest from several global
private equity firms.
Write to Rick Carew at rick.carew@wsj.com
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