FAM Krusevac acquired by Valvoline Group – Purchase of Krusevac factory by Ellis Enterprises East approved

The Commission for Protection of Competition has approved the concentration of participants in the oils and lubricants market of Serbia arising from the acquisition of direct individual control by the Belgrade-based company Ellis Enterprises East d.o.o, a member of Valvoline Group, over the operations of the state-owned Fabrika Maziva FAM Krusevac AD.

The concentration act examined by the commission is the sales and purchase agreement of February 24 between FAM and Ellis, whereby the ownership over certain movable and immovable property, intellectual property rights and all clients in the segments of lubricants, industrial oils and related products are transferred.

Ellis was founded in March 2018, is registered for the production of petroleum products and has so far not made income in the Serbian market, nor is it present in it, as the commission has determined. As said, Ellis is a part of Valvoline Group, controlled by the US-based Valvoline Inc.

FAM is the leading domestic producer of lubricants and oils. As noted in the decision, it exports to 10 countries in Europe and has 579 products.

According to the commission, this market in Serbia equals 30,000 tons in the total amount of EUR 48.5 million, and FAM has a 20-30% market share in the wholesale segments, whereas, regarding the total production, the company’s share amounts to 40-50%.

The commission has determined that the concentration will lead to a minor overlap, and that the market share when it comes to sales will increase by up to 5%.

After the termination of the privatization process, FAM is now in the process of reorganization and currently in the majority ownership of the state. Aside from Ellis, Valvoline Group has no other subsidiaries in Serbia, the decision reads.

Fabrika hemijskih proizvoda Hemofluid Kruševac

Komisija za zaštitu konkurencije Srbije

Ellis Enterprises East doo Kruševac

Valvoline Group

sale of Fabrika Maziva FAM Kruševac

sale of FAM Kruševac

acquisition of Fabrika Maziva FAM Kruševac

production of lubricants

lubricants

production of industrial oil