Aramco, Saudi Arabia’s public petroleum and natural gas company, announced $2.65 billion equity purchase agreement to acquire Valvoline Inc.
Commenting on the acquisition in their press release, Aramco explained how this step will help them expand as they will gain access to Valvoline’s 150-years of expertise in the field and its robust manufacturing and distribution network.
It also highlighted that Valvoline’s numerous partnerships with original equipment manufacturers will be used to open up opportunities for global expansion.
“Valvoline’s global products business fits perfectly with Aramco’s growth strategy for lubricants as it will leverage our global base oils production, contribute to our R&D capabilities and strengthen our existing relationships with OEMs. Valvoline’s brand strength and global recognition will continue to be developed and extended under Aramco’s stewardship,” said Mohammed Y. Al Qahtani, Aramco Senior Vice President of Downstream.
Valvoline will focus on its Retail Services’ product offering, which was seperated from Global Products less than a year ago, such as expanding its “auto maintenance service model to EV owners, and fleets as the car parc evolves.”
“The sale of Global Products represents the successful outcome of our strategy to unlock the full, long-term value of our strong but differentiated Retail Services and Global Products businesses. We are pleased that our Global Products team will have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader,” said Sam Mitchell, Valvoline CEO.
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