Tide Water Oil acquires BP's Veedol lubricants brand
28 October 2011
Tide Water Oil Co Ltd, a member of the Andrew Yule group, has acquired 100-per cent of the shares of Veedol International Ltd from global energy major BP Plc.
The acquisition puts an end to a 17-year battle between Tide Water Oil and Castrol over the rights of Veedol brand in India. Castrol Ltd and Lubricants UK Ltd, both wholly-owned subsidiaries of BP plc own the Veedol brand. Neither BP, nor Tide water Oil reveal the amount involved in the deal.
"The acquisition will put an end to the litigation that is pending between Castrol and us over the rights of Veedol," R N Ghoshal, executive director of Tide Water Oil, said.
Tide Water Oil has been manufacturing and marketing Veedol in India since 1920, when its US parent had shares in the company, and has "historical rights" over the brand.
BP had, earlier this year, announced its intention to sell the Veedol brand through a competitive bidding process. Tide Water, which has been marketing Veedol in India and has built up a substantial business in lubricants, was the obvious choice for the transaction.
The Veedol brand is nearly 100 years old and has a strong global image. Through this acquisition, Tide Water Oil will get global rights to the whole portfolio of Veedol and its associate products in more than 100 countries where the Veedol brand owned registrations.