The acquisition of this specialty chemical maker would make Gulf Oil the world's 9th largest lubricant company, without affecting its financials as the purchase has been made through "a step-down subsidiary structure" in the US and UK.

Houghton, a global market leader in metal working fluids, has 12 manufacturing facilities in 10 countries and sells its products in more than 75 countries. It recorded sales of USD 858 million and operating profits of USD 132 million in 12-month period ended September 2012.

'Metal working fluid' is a speciality chemical used for a variety of metal processing applications, including metal cutting and removal, metal forming, drawing and stamping, corrosion prevention and hydraulic systems.

"We are delighted that we have been successful in acquiring Houghton in the face of strong competition and shall strive to strengthen and support Houghton in the coming days," Gulf Oil Chairman Sanjay G Hinduja said.

Shares of Gulf Oil rose sharply by over six per cent at the BSE and were trading at Rs 84.8 in late morning trade.

"Gulf Oil Corporation Ltd will operate Houghton as a separate company and the rest of Gulf's operations will be able to leverage Houghton's extensive base of industrial

customers to offer them a complete end-to-end range of lubricants," the company said in a filing to the BSE.

Similarly, Houghton will be able to leverage other synergies that can be achieved in manufacturing, strategic sourcing and distribution, it said.