Aramco will complete the buyout of the US-based Valvoline Global Products (VGP) in 2023, according to Mohammed Y. Al-Qahtani, Aramco’s downstream senior vice president.
The oil giant disclosed this month that it had signed a $2.65 billion equity purchase agreement to acquire the US-based company.
Al-Qahtani said the purchase corresponds with the company’s base oil portfolio and lubricant growth strategy. VGP is a leading worldwide independent producer and distributor of premium branded automotive, commercial and industrial lubricants and automotive chemicals.
Aramco would expand its research and development activities and its partnership with original equipment manufacturers. The buyout will also complement its line of premium branded lubricant products.
“Valvoline and Aramco will expand their existing partnership to ensure that Valvoline’s iconic brand is managed in a consistent and holistic manner,” he said.
VGP will acquire perpetual ownership of the Valvoline brand, trademarks and copyrights in the products sector, Al-Qahtani said.
As the crude producer seeks to expand the brand globally, VGP’s robust manufacturing and distribution network, significant R&D capabilities, strong partnerships with major OEMs and 150-year brand recognition will benefit the company, he added.
He said that this transaction contributes significantly to Saudi Aramco’s 2030 strategic target of selling finished lubricants.
Thanks to the acquisition, Aramco would own the Valvoline brand worldwide after closing the deal, he said. For retail services, Valvoline will hold the Valvoline brand globally, excluding China and certain Middle Eastern and North African countries.