Saudi Aramco completes acquisition of Valvoline's U.S. Global Products business - Sadahadhramowt | News

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الأربعاء، 8 مارس 2023

Saudi Aramco completes acquisition of Valvoline's U.S. Global Products business

 Riyadh-agencies :

The Saudi Arabian oil company (Saudi Aramco), through one of its wholly owned subsidiaries, has completed the acquisition of Valvoline global operation, a subsidiary of the American company Valvoline, for a value of USD 2.65 billion.


According to the Saudi Press Agency (SPA), Saudi Aramco aims through this acquisition, which comes after the two companies signed a share purchase agreement announced on the first of last August, to become one of the most prominent integrated brands in the world in the field of lubricants.


"Under this deal, (Saudi Aramco) will own the brand (Valvoline) in relation to the product business, while (Valvoline) company will own the brand in relation to its retail services business, as (Aramco) and(Valvoline) plan to work together to further spread the ownership of the brand (Valvoline) globally,"the agency said.


"Valvoline global operation will continue to operate through its headquarters in Lexington, Kentucky, USA,"the agency added.


Mohammed Al-Qahtani, executive vice president of refining, chemicals and marketing at Saudi Aramco, said:"This acquisition will strengthen our international strategy in terms of lubricants and allow us to optimize the use of our global capabilities in terms of base oil production and research and development.


"The acquisition represents an encouraging opportunity to strengthen our relationship with OEMs around the world by expanding Valvoline global operation's presence as a leader among multinational lubricant brands, a position it has held for more than a century and a half,"added Al-Qahtani.


Valvoline CEO Sam Mitchell predicted that Valvoline will deliver significant capital returns to our shareholders through share buybacks over the next 18 months and all this will allow us to focus our efforts on our brand and strengthen it as a Leading Provider of automotive after-sales services.     


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