"Aramco" Saudi Arabia buys 150-year-old company

Saudi-based Aramco announced that it has signed an agreement to acquire Valvoline International Products, which includes motor oils, transmission fluids, coolants and other automotive maintenance products.

Valvoline said the deal would separate its global products from its retail business and transform it into a vehicle-only service provider.

With over 150 years of history, the company operates approximately 1,700 service centers and stores throughout the United States provide oil change and other express vehicles.

Valvoline also noted that the deal will help it focus more on the electric vehicle sector. Valvoline is already one of the main suppliers of battery fluids to electric vehicle manufacturers.

Valvoline said it expects to use $2.25 billion in net proceeds to return capital to shareholders through share buybacks, debt reduction and investments in the retail services business.

Completion of the transaction is subject to regulatory approval, which is expected by the end of 2022 or early next year.

Aramco, the Saudi state oil company, has been expanding its refining business in recent years.

“The Valvoline Global Products segment is fully in line with Saudi Aramco’s lubricants growth strategy as it will add value to our base oil operations worldwide,” said Mohammed bin Yahya Al Qahtani, Aramco’s Vice President of Refining, Refining and Marketing.

Upon completion of the transaction, Valvoline will own the brand name for all retail services worldwide except for China and certain countries in the Middle East and North Africa, while Aramco will own the Valvoline brand name for all uses. products around the world.

Valvoline said it will purchase motor oils and related products from the international business sector as part of a long-term supply agreement.

Source: AB