press release

Chevron Press Release - Chevron Acquires Amoco's Lubricants Business

SAN FRANCISCO, June 11, 1998 -- Chevron today announced that Chevron Products Co. has signed an agreement to purchase Amoco Corp.s Lubricants business unit. The acquisition will create one of the largest marketers of branded finished lubricants in North America.

The deal includes Amoco product names and formulations, but no production facilities. Chevrons Global Lubricants business unit is a leading manufacturer and marketer of motor oils for heavy duty diesel engines, as well as industrial lubricants and passenger car motor oils. Amocos Lubricants business unit markets a similar product line. Both companies market their lubricants through networks of independent distributors and jobbers.

"This acquisition is a key step toward accomplishing our strategic intent of becoming a leader in the branded lubricants business," said Dave OReilly, president of Chevron Products Co.

Peter McCrea, vice president of Chevron Global Lubricants, called the acquisition "a perfect strategic fit for Chevron. It positions Chevron as the leading marketer of heavy duty and industrial oils in North America, and at the same time strengthens us in the industrial heartland of America, where Amoco has been a leading supplier. Chevron and Amocos similar approaches to marketing will ensure that Amocos customers have continuity of supply into the future from a customer focused marketer."

Chevron and Amoco lubricants divisions will continue to operate separately until the sale becomes effective following Federal Trade Commission review.

Financial terms of the deal were not disclosed.

Updated: June 1998