Castrol, which bills itself as a global leader in lubricants and is a subsidiary of BP, has announced a US-dollar-denominated investment of up to $50m in Taiwan-based and NASDAQ-listed Gogoro. Gogoro boasts status as a global technology leader in battery-swapping “eco-systems” that enable smart mobility solutions for cities – principally electric scooters.
In the first tranche of investment, corporate affiliate Castrol Holdings has bought $25m in Gogoro ordinary shares. This will be followed by a second $25m purchase in the form of a convertible note, subject to the consummation of certain transactions by the parties in connection with their business collaboration. The initial buy-in will result in Castrol acquiring approximately 5.7% of Gogoro’s equity, thereby unlocking diversification opportunities beyond its core lubricants and fluids business under a new “Onward, Upward, Forward” strategy.
Commenting on the deal, Castrol chief executive Michelle Jou said: “Powered two-wheelers are a critical part of our global product portfolio. And, as our customers transition to electric two-wheelers, the Castrol brand has an important role to play.”
Waxing lyrical without a seductive sniff of good ol’ Castrol R or the benefit of full stops, Jou continued: “Our investment in Gogoro is a strategic step towards diversifying our portfolio, remaining relevant in our customers’ lives, embracing new opportunities to future-proof our iconic 125-year-old brand and to create additional value for our shareholders.”
According to Jou, Gogoro’s vision is to accelerate the urban shift to sustainable two-wheeler transportation in the world’s most densely populated cities. “At the heart of Gogoro’s eco-system is an open and interoperable battery-swapping platform for lightweight two- and three-wheeler urban vehicles,” he added effusively.
Joining in with his own eulogy, Gogoro founder and chief executive Horace Luke opined: “Our proven battery-swapping platform and smart electric two-wheeler vehicles have demonstrated how cities can be transformed when given access to smart, sustainable and convenient portable power. The investment by Castrol is a testament to this success and enables us to expand even faster.”