Carlyle, Huo's Group buy Shell stake in Chinese lubricant firm

Shell acquired its stake in Tongyi in 2006 from Huo's Group, whose business includes logistics, energy, consumer goods and investment. The company has operated as a joint venture between Shell and Huo's Group since the purchase.

Tongyi is a leading supplier of lubricants in China, and has blending plants in three cities. In a statement, Carlyle said that it sees Tongyi as a crucial entry into their portfolio and a way to further pursue opportunities produced by the rise of China's middle class.

Carlyle's investment came from its fourth buyout fund, Carlyle Asia Partners IV, which launched in 2012 and closed last September at $3.9 billion. The fund seeks control and significant minority investments in well-established companies across the Asia ex-Japan region, with a wide focus that includes consumer products and services, financial services, transportation, media and telecommunication.

Carlyle's last China deal from the Asia Partners IV fund was in June, when it invested $120 million in Shanghai ANE Logistics, a company which provides courier and logistics services. 

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• Topics
• Greater China
• Industrials
• Buyouts
• Buyout
• GPs
• China
• The Carlyle Group
• buyout
• GPs