Originally Posted By: wgtoys
Chevron would be an obvious strategic buyer as Chevron has failed to establish a strong consumer brand name for its lubricants, even though they are well regarded by insiders. Last year's effort to establish Havoline as a premium consumer brand didn't work.
Shell bought Pennzoil and Quaker State for just this reason. Likewise, BP bought Castrol. ExxonMobil has the strong Mobil-1 brand and really doesn't need another consumer brand.
According to new reports, Prestone (Honeywell) and several private equity firms are interested. No mention of any oil companies. I am not sure that the major oil companies want anything to do with consumer marketing or retail operations anymore.
Here are excerpts from this article:
http://www.csnews.com/csn/petroleum/article_display.jsp?vnu_content_id=1003869959
Quote:
Big Oil Continues to Refine Focus
Big Oil companies have continued to exit the retail convenience store business in order to focus on their core competencies in exploration, drilling or refining.
...
...Last month, ConocoPhillips sold its last 600 company-owned gasoline stations to PetroSun West LLC for $800 million...
ConocoPhillips, like other oil companies that are fleeing the low-margin U.S. retail-gasoline sales business, will continue to refine oil and sell fuel as a wholesaler to gas stations. The Conoco, 76 and Phillips 66 brands will continue to fly over gas stations.
...Earlier this year, ExxonMobil said it will sell its company-owned gas stations within the next few years -- citing profitability issues with the stations. On the c-store front, ExxonMobil reduced its number of corporately owned stores from 901 in 2004 to 799 this year. BP, the largest Big Oil c-store operator, also put more than 480 stores throughout the U.S. (including locations in Arizona, California, Georgia, Illinois, Ohio and Washington) up for sale as part of its previously announced plan to sell all of its stores by the end of 2009. Most of the stores were expected to be sold to franchisees, and the remaining to dealers and large distributors...
...Many major oil companies have determined that direct operations no longer fit their business model. Some are embracing franchising or complete withdrawal from any connection to direct retail.
I realize that motor is not exactly "direct" retail, but Valvoline does own a chain of retail oil changes places (as a way to guarantee a certain amount of demand for their product). And motor oil requires direct consumer marketing, which big oil companies are not very comfortable with any more due to those "obscene profits".