Aramco to acquire Valvoline’s global business

The purchase of the producer and distributor of lubricants will complement the oil company’s current line of branded products.

The Saudi Arabian Oil Company (Aramco) has announced the signing of an equity purchase agreement to acquire Valvoline’s global products business for US$2.65 billion. Aramco aims to benefit from the company’s manufacturing and distribution network, research and development capabilities, partnerships with manufacturers and its recognition to expand the brand globally.

Valvoline is one of the top independent producers and distributors of premium branded automotive, commercial and industrial lubricants, and automotive chemicals. The strategic acquisition will complement its buyer’s line of premium branded lubricant products, optimise its global base oils production capabilities, and expand its own activities and partnerships.

“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, Senior Vice President of Downstream for Aramco.

Following the transaction, Valvoline will focus on its market business, including further enhancing its growth trajectory and world-class service model. Retail Services expects to benefit from a strong balance sheet and a clear strategy for value creation, including extending its world-class preventive auto maintenance service model to EV owners, and fleets as the car park 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 have built two leading businesses that are well-positioned for continued success as they pursue their individual strategic priorities. 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,” added Sam Mitchell, CEO of Valvoline.