INDIA’S Hinduja group’s Gulf Oil announced on Wednesday (November 7) that it was acquiring US-based oils and chemicals firm Houghton International for $1.04bn (£65m) from a private equity fund.
The deal – one of the largest overseas acquisitions by an Indian company so far this year – will be carried out by Gulf Oil’s UK-based subsidiary, a statement said.
The agreement for the acquisition was signed on Tuesday (November 6), it added, but the deal is still subject to certain regulatory approvals.
Details of the financing for the deal were not disclosed.
Pennsylvania-based Houghton International is among the world’s biggest manufacturers of hydraulic fuels, rust preventatives and lubricants for the automotive and steel sectors.
The acquisition will allow Gulf Oil to expand its lubricants and chemicals business worldwide.
“The acquisition fits extremely well with Gulf’s lubricant portfolio. Houghton has a strong industrial portfolio, which perfectly complements Gulf’s very strong presence in the automotive lubricant sector,” the statement said.
Houghton will continue to operate as a separate company after the deal is completed, said the statement.
The Hinduja group is one of India’s biggest industrial houses with interests ranging from banking and trucks to chemicals.
The Hinduja brothers, who steer the group, are India’s ninth richest with a net worth of $8bn (£5.0bn) according to Forbes magazine, and are based in London and Mumbai.
Indian firms have been increasingly looking overseas for acquisitions as red tape, corruption and land issues often hurt plans to expand at home.
