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Shell buys Pennzoil-Quaker State
Shell agrees to pay $1.8B cash for nation's leading motor oil company.
March 26, 2002: 9:08 AM EST

NEW YORK (CNN/Money) - Shell Oil Co. agreed to acquire motor oil maker Pennzoil-Quaker State Co. Monday for about $1.8 billion in cash.

Shell, a member of the Royal Dutch/Shell group, said it will pay $22 a share for Pennzoil (PZL: Research, Estimates), which makes the nation's No. 1 and No. 2 brands of motor oil. That represents a premium of about 42 percent over Pennzoil's closing price of $15.49 Friday.

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Shell also will assume Pennzoil-Quaker State's outstanding debt.

A Shell spokeswoman said the company expects layoffs of about 15 percent of the combined workforce of Shell Lubricants and Pennzoil. Pennzoil has about 5,150 employees.

The transaction is expected to be completed in the second half of 2002 and add to Shell's earnings in the first full year after completion.

In addition to Pennzoil and Quaker State motor oils, which Shell says ultimately will replace the company's use of competitor ChevronTexaco Group's (CVX: Research, Estimates) Havoline, Shell is acquiring more than 2,000 Jiffy Lube stores.

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"The combination of Shell and Pennzoil-Quaker State Co., the largest independent lubricants company in the world, will make Shell a leader in the U.S. and global lubricants market," Royal Dutch/Shell Managing Director Paul Skinner said. "It also strengthens our U.S. oil products business."  Top of page






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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.