WASHINGTON -- The U.S. Federal Trade Commission has approved ChevronTexaco Corp.'s plan to sell two Texaco U.S. refining and marketing businesses to Shell Oil Co. and Saudi Refining Inc. The sale of Texaco's interest in its Motiva and Equilon joint ventures was one of the conditions the FTC imposed when it approved Chevron Corp.'s $39.5 billion acquisition of Texaco in September.
Under terms of the deal outlined in October, Shell will have a 100-percent interest in Equilon, and Shell and Saudi Refining will each have a 50-percent interest in Motiva.
Currently, Texaco holds a 44-percent interest in Equilon and a 35-percent interest in Motiva. Shell holds a 56-percent interest in Equilon and a 30-percent interest in Motiva. Saudi Refining Inc.’s holds a 35-percent interest in Motiva.
And as reported in a CSP Daily News Flash on Friday, with the purchase of Texaco’s assets in the U.S. downstream business, Equiva Services has launched a rebranding initiative--one of the largest rebranding efforts ever undertaken in the U.S.--to convert the majority of Texaco stations in the U.S. to Shell, says the Houston-based shared services company.
Meanwhile, ChevronTexaco Global Lubricants has launched multi-million dollar sponsorships of the 2002 Winter Olympics and NASCAR racing for its Havoline motor oil brand.
Havoline’s exclusive motor oil sponsorship at the Winter Olympic games is the brand’s first initiative since Chevron and Texaco merged in October 2001. Support for the sponsorship will include national TV commercials promoting Havoline and ChevronTexaco, Havoline banners and signage in the Salt Lake area and promotional support for ChevronTexaco Lubrication marketers and retail partners. Television exposure to more than 10 billion people will support current efforts to increase store traffic and sales.
ChevronTexaco also renewed its multi-million dollar investment in Havoline Motor Sports to strengthen the brand’s reputation as a racing oil. The company is sponsoring Ricky Rudd’s car No. 28 and will advertise Havoline throughout the 2002 Winston Cup season, beginning with the Daytona 500 this month.
The company also has plans for long-term support of the Texaco brand. “We will leverage our global presence, sales representatives, full line of products, portfolio of value-added services and investments in plant, R&D, operational and lubricant infrastructure,” said Nelson. “The Texaco brand will be stronger and better because of the ChevronTexaco merger, and it’s a brand we are committed to strengthening.”
