Private equity strikes oil

Private equity is stalking Infineum, an oil additives joint venture between Exxon Mobil and Royal Dutch Shell, which could fetch up to £1.5bn (US$2.95bn).

The Financial Times said that TPG Capital, Cinven, The Carlyle Group and Kohlberg Kravis Roberts have submitted bids for Infineum this week or are expected to do so imminently.

Other financial buyers believed to have shown interest include Bain Capital, BC Partners, Apollo Management and Vestar Capital Partners.

The auction is being run by JPMorgan. The report said that the bank initially offered bidders a staple financing package, which has now been withdrawn.