Repsol has reached agreement to acquire 40% of Mexican lubricant company Bardahl, which represents its biggest purchase in this business and pushes forward its internationalisation strategy in Downstream. A Repsol communique has said that the company will produce and sell its lubricants in Mexico through Bardahl.
The operation falls within Repsol’s plan for increasing its lubricants area, which will double its volume of sales, up to 300,000 tons in 2021, 70% of it coming from international business. Mexico will become one of Repsol’s main lubricant markets, and in the centre of its production in Latin America.
This operation accompanied the company’s plans for more service stations in Mexico. The acquisition is in line with Repsol’s Strategic Plan, which anticipates an investment of 1.5 billion euros up till 2020 to expand the international business in petrochemicals, service stations, lubricants and trading.
Repsol will invest about 400 million euros in the opening of between 200 and 250 service stations per year in Mexico until 2022, with the aim of reaching a market share of 8 to 10%. Repsol’s current network has 60 service stations in nine states: Mexico City, State of Mexico, Veracruz, Baja California Sur, Jalisco, Oaxaca, Puebla, Hidalgo and Tlaxcala.
Bardahl is an important producer of automotive lubricants and fuel additives in Mexico. It markets its products throughout the country through its own distribution network and other channels.