The transaction includes the PANOLIN brand, ECL product formulations, intellectual property, technical expertise and technology, international customer base and portfolio of products – for hydraulics, gears, universal tractor transmission oils, biodegradable engine oils (HDEO), turbine oils, chainsaw oils and greases for machine lubrication, including leading OEM-approved products.

ECLs are biodegradable lubricants and can help contribute to a more sustainable future, offering greater protection for wildlife and ecosystems in the event that they come into contact with the environment, in comparison to conventional lubricants. They enable customers to reduce the risks of operating in sensitive environments. The global market for ECLs is expected to grow significantly over the coming years.

Following completion of the transaction, Shell will manufacture, distribute and market the PANOLIN portfolio of ECL products alongside its established Shell Naturelle branded products. The acquisition will strengthen Shell’s presence in the mining, construction, agriculture, renewable power, hydropower and offshore wind sectors.

Shell expects to fully integrate the business into its global lubricants business within two years after completion, aligning with Shell’s Powering Progress strategy to accelerate the transition to a net-zero emissions energy business by 2050.

Machteld de Haan, Global Executive Vice President of Shell Lubricants, said: “We are entering into this strategic acquisition to grow our presence in the global industrial lubricants market, through differentiated, value-added propositions for our customers. Once completed, the acquisition will enable us to complement our existing range of sustainable products in response to increasing customer demand.”

All PANOLIN staff who currently support the ECL business in Switzerland, the UK, US and Sweden are expected to join Shell.

Subject to regulatory clearance and the satisfaction of closing conditions, the deal is expected to be completed by early 2023.