Valvoline has sold its unit that makes lubricants, coolants and other automotive products to Aramco for $2.65 billion in cash to focus on its retail services business.
With the acquisition, Aramco deepens a bet on the long-term demand for petrochemicals. The oil giant has been expanding its presence in the sector, known as downstream, and bought petrochemical maker Saudi Basic Industries Corp in 2020.
Valvoline Global Products is a producer and distributor of premium branded automotive, commercial and industrial lubricants, and automotive chemicals.
The acquisition will complement Aramco’s line of premium branded lubricant products, optimize its global base oils production capabilities, and expand Aramco’s own research and development activities, said Senior Vice President of Downstream, Mohammed Y. Qahtani.
“Valvoline’s brand strength and global recognition will continue to be developed and extended under Aramco’s stewardship,” he added.