Saudi Aramco agrees to buy Chile’s Esmax

Saudi Aramco agrees to buy Chile’s Esmax

The Saudi Arabian oil giant Aramco announced it agreed to buy 100 %of Chile’s Esmax Distribución SpA (Esmax) from Southern Cross Group, according to a company statement.

Esmax is a diversified downstream fuels and lubricants retailer in Chile.

The oil giant’s acquisition of Esmax would be its first Downstream retail investment in South America, due to the potential and attractiveness of these markets as well as it aligns with Aramco’s goal of boosting its downstream value chain.

In 2022, Esmax recorded revenue of the equivalent of $2.5 billion and a profit of $57.7 million. Esmax distributes Petrobas fuel in Chile. 

The transaction is subject to certain customary conditions, and regulatory approvals.

Esmax’s national presence includes retail fuel stations, airport operations, fuel distribution terminals, and a lubricant blending plant.

This transaction would empower Aramco to secure outlets for its refined products and expand its retail business to international markets.

The deal would also further open new market opportunities for Valvoline branded lubricants, after Aramco’s acquisition of the Valvoline global products business in February 2023.

Mohammed Y. Al Qahtani, Aramco Downstream President, said on the company’s X account: “This agreement is yet another milestone in our strategy to grow Aramco’s downstream presence globally and expand our retail, lubricants, and trading businesses.“We are excited by the opportunities it presents, creating synergies with our extensive trading and manufacturing systems.

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