Skip to content Skip to Search
Skip navigation

Aramco buys Valvoline unit for $2.6bn

By Pramod Kumar
Valvoline Inc. is an American manufacturer and distributor of automotive oil, additives and lubricants Creative Commons
Valvoline Inc is an American manufacturer and distributor of automotive oil, additives and lubricants

The Saudi Arabian Oil Company, better known as Aramco, has announced the signing of an equity purchase agreement to acquire the global products business of US-based Valvoline Inc for $2.65 billion. 

Valvoline Global Products (VGP) is an independent producer and distributor of premium branded automotive, commercial and industrial lubricants and automotive chemicals.

Aramco said it will benefit from VGP’s manufacturing and distribution network, significant R&D capabilities, strong partnerships with major manufacturers and a 150-year legacy of global brand recognition as it pursues opportunities to extend the brand globally. 

It added that the acquisition will complement Aramco’s line of premium branded lubricant products and optimise its global base oils production capabilities. 

Mohammed Y Al Qahtani, Aramco’s senior vice president of downstream, said: “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 original equipment manufacturers. 

“Valvoline’s brand strength and global recognition will continue to be developed and extended under Aramco’s stewardship.

“We are also very excited to have the outstanding people of VGP join the Aramco family as we continue to execute on our ambitious strategy.”

Following the transaction Valvoline will focus on its retail services business which is expected to benefit from a strong balance sheet and a strategy for value creation, including extending its preventative auto maintenance service model to EV owners.

“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,” Sam Mitchell, Valvoline CEO, said. 

“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.”

Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.

Latest articles

Water, Waterfront, Port

UAE and India on track to hit $100bn non-oil trade

The UAE and India will surpass the $100 billion non-oil trade target by 2030, with increasing aviation links between the two countries seen as a potential catalyst. Bilateral trade increased by 15 percent since the comprehensive economic partnership agreement (Cepa) was implemented in May 2022, the Indian government-owned Press Trust of India reported, quoting Cepa council director […]

Architecture, Building, Convention Center

First phase of Dubai $35bn airport to be ready in 10 years

Dubai has launched the world’s largest passenger terminal at Al Maktoum International at a cost of AED128 billion ($34.85 billion), capable of handling 260 million passengers annually upon completion. The initial phase of the mega project, slated to be completed within a decade, will be able to accommodate 150 million passengers annually, the UAE state-run […]

Migrants attempting to reach Italy from Tunisia. About 270,000 so-called irregular migrants arrived in the EU via sea crossings last year

EU reveals total aid to North Africa to combat migration 

The European Union provided €673 million ($718 million) in funding to four North African countries from 2021-23 to help the quartet reduce what it calls irregular migration to the 27-member bloc, official data shows. Last year about 270,000 “irregular migrants” arrived in the EU via sea crossings, 64 percent more than in 2022. Crossings from […]

The SPA report highlighted a number of metrics as being on target, including home ownership of 53.7 percent

Third of Vision 2030 projects ‘completed’ government says

One third of 1,064 planned projects have been completed so far under the Vision 2030 economic transformation plan, the Saudi government said in its annual progress report on the reform programme.   The report also said 561 initiatives were on track, according to the state-owned Saudi Press Agency, publishing its major findings. It was not […]