Saudi Aramco's storage terminals
Saudi Arabian Oil Co. (Saudi Aramco) announced today, Aug. 1, the signing of a purchase agreement to acquire Valvoline Global Products (VGP), a subsidiary of US-based Valvoline Inc., for $2.65 billion.
The deal’s completion is subject to the applicable closing conditions, including regulatory approvals, Aramco said in a statement picked up by Argaam.
The oil giant will benefit from Valvoline's strong manufacturing and distribution network, robust partnerships with users and suppliers, coupled with its 150-year global brand reputation.
After completion of the transaction, Valvoline will focus on developing its retail services business, including enhancing its growth path and service model.
Aramco expects its retail services segment to benefit from Valvoline’s strong financial position and clear strategy for value creation, including expanding its world-class preventive maintenance services model for electric-vehicle owners and fleets as the number of registered vehicles mounts.
Mohammed Al Qahtani, Senior Vice President of Downstream at Saudi Aramco, 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 OEMs. 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,” he added.
Valvoline is a global company engaged in the production and supply of premium-branded lubricants for automobiles and industrial uses.
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