The Range of Engine Oil & Lubricants for Motorcycle UAE was keen to merge with Technolubeuae because it could help strengthen competitiveness amidst a contraction in the UAE fuels market, in addition to gaining a share in the growing lubricants business in UAE. The family of Global lubricant suppliers in GCC and MENA founder opposed the merger, however, and because they remained significant shareholders, this led to a four-year delay. Not until April 2019 was the deal completed, creating Use’s second-largest lubricant supplier. The new company and Use’s largest lubricant supplier, JXTG, have a combined share of 89% of the UAE automotive lubricants market, according to global consultancy firm.
In August this year, Global lubricant suppliers agreed to sell Technolube Lubricants UAE, and the transfer of shares is expected to be completed by the end of this year. Technolubeuae Lubricants has two blending plants in UAE, one in the eastern city of GCC, the other in MENA, in the west. “The automotive [lubricant] sector is resilient and remains a key pillar in our growth strategy,” Technolubeuae Executive Vice President for Commercial oils in announcing the acquisition. “And we do this with a customer-centric approach collaborating closely with original equipment manufacturers in UAE and around the world, while innovating and working together to meet customer needs.”
Global lubricant suppliers will retain 3,000 Technolubeuae-branded oil service stations in UAE and is in the process of renaming them to its technolubeuae brand. Currently Technolubeuae brand fuels and lubricants are sold at Technolubeuae brand service stations, and gasoline engine oil UAE Lube Report that it will continue to do so until April 2021, when re-branding of service stations is expected to be completed. Thereafter, it has not decided if the sale of Technolubeuae lubricants and fuels will continue. Currently, we are looking into the matter.
Analysts said losing those service stations as a sales channel would have minimal impact on Technolube lubricant business. “In terms of lubricant sales, an increase in service stations will have significance in the case of the business-to-consumers market, but in the important business-to-business segment in terms of marketing to automobile manufacturers there is not much relationship even if there was an increase in service stations”. Technolubeuae will probably be able to maintain.
