Saudi Arabian Oil Company (Aramco) has completed the acquisition of Valvoline’s lubricants unit Valvoline Global Products (VGP) for $2.65bn.
Valvoline Global Products is engaged in the production and distribution of automotive chemicals and automotive, commercial, and industrial lubricants.
The acquisition, which was first announced in August 2022, forms part of Aramco’s efforts to become one of the major integrated, branded lubricants players.
Valvoline will now own the Valvoline brand for all retail services purposes, excluding China and some countries in the Middle East and North Africa.
Aramco will own the Valvoline brand related to the products business.
Aramco downstream executive vice-president Mohammed Y Al Qahtani said: “This acquisition will advance our international lubricants growth strategy, and leverage our global base oils production and research and development capabilities.
“It also provides an exciting opportunity to strengthen our relationship with original equipment manufacturers worldwide by extending the reach of Valvoline Global Operations as a preeminent company among multi-national lubricant brands, a position it has proudly held for over a century and a half.”
In a separate development, Aramco is looking to invest in a liquefied natural gas (LNG) facility outside of Saudi Arabia, which would easily ship the super-chilled fuel to markets in Asia, reported Bloomberg News.
The move comes amid surging fuel demand in the wake of Russia’s invasion of Ukraine.
The firm is in early discussions with undisclosed LNG plant developers to purchase stakes in projects in the US and Asia and secure supplies, people privy to the development told the publication.