ExxonMobil said it has completed the acquisition of PT Federal Karyatama (FKT), one of Indonesia’s largest manufacturers and marketers of motorcycle lubricants, from PT Mitra Pinasthika Mustika Tbk. and its affiliate. The acquisition, first announced in April, includes the Federal Oil brand and a 700,000-barrel-per-year lube blending plant in Cilegon, Indonesia. Financial details of the transaction were not revealed.
The acquisition of FKT and its distribution network, which is supported by about 40 dealers, 3,200 Federal Oil centers and more than 10,000 retailers in Indonesia, strengthens ExxonMobil’s position in a key growth market and will contribute to building the Mobil lubricant brand in Indonesia.
“Indonesia is one of the fastest growing lubricants markets in Asia,” said Russ Green, vice president of ExxonMobil Finished Lubricants. “Federal Oil’s expertise in motorcycle lubricants complements the Mobil lubricants offer in other sectors where ExxonMobil has significant experience, which will help us continue to grow and better serve our customers in Indonesia.”
ExxonMobil will manage both the existing Indonesian Mobil-branded lubricants business and the FKT business.
“Federal Oil is a quality brand with a long history in Indonesia,” said Louise M. McKenzie, president of ExxonMobil Indonesia. “The knowledge and experience of FKT employees and distributors will play a key role in achieving our lubricants business’ objectives in the region.”
Subsidiaries of ExxonMobil and its predecessors have operated in Indonesia for more than 120 years, and have invested more than USD 23 billion in the country since 1979. Ninety-seven percent of ExxonMobil’s more than 800 employees, which now include FKT employees, are Indonesian.