Saudi Aramco is set to expand its presence in South America with the acquisition of fuel distributor Primax, which operates in Peru, Colombia and Ecuador.
The acquisition is valued at approximately $3.5bn, according to a report by Reuters, citing Peruvian newspaper Gestion.
The acquisition of Grupo Romero-owned Primax, which operates 2,185 petrol stations across the three countries, aligns with Aramco's strategy to diversify its portfolio and strengthen its position in the global energy market.
By acquiring Primax, Aramco aims to leverage the distributor's market presence and brand recognition in the region.
The deal is part of Aramco's broader strategy to tap into South America's expanding fuel consumption.
Aramco declined to comment on the transaction, and Primax and Grupo Romero did not immediately respond to requests for comment.
Aramco's acquisition of Primax follows its purchase of a minority stake in Peru LNG from Hunt Oil Company last year.
This move further solidifies Aramco's presence in Peru and highlights its commitment to expanding its downstream operations globally.
In February, Aramco reached agreements to acquire a 25% share in Unioil Petroleum Philippines, a downstream fuel operator established in 1966.
Subject to regulatory clearance, the deal aligns with Aramco’s broader strategy to enhance its global downstream presence and retail footprint.
Unioil is a key player in the Philippines' downstream sector, with a network of 165 retail stations and four storage terminals.
The acquisition seeks to capitalise on the increasing demand for premium fuels in the Philippines.
The company is also reportedly considering acquiring bp's Castrol lubricant business, valued at approximately $10bn (£7.72bn).
BP has been exploring options for its Castrol division, including a potential sale, as part of a strategic review.
The valuation of the Castrol business is estimated at between $6bn and $8bn, according to investment banking firm Panmure Liberum.
Aramco’s interest in Castrol is mainly centred on its strong presence in fast-growing markets like India, where Castrol India is valued at approximately $2.5bn (Rs214.04bn).
