Acquisition of Valvoline Global Products to close in 2023
Mohammed Y. Al-Qahtani, downstream senior vice president of the Saudi Arabian Oil Company (Aramco), said he expects Aramco to complete its acquisition of Valvoline Global Products by early 2023.
Aramco announced its acquisition of Valvoline Global Products on August 1, 2022, following months of speculation.
Completion of the transaction is subject to customary closing conditions and regulatory approvals.
Speaking to Arab News, the largest English language daily in Saudi Arabia, the Aramco executive said that Aramco would expand its research and development activities and its partnership with original equipment manufacturers (OEMs) following the acquisition of Valvoline Global Products.
In October 2021, U.S.-based lubricant marketer Valvoline Inc. announced the separation of its its quick lube business in North America, which represents about a third of total sales, from its global products business. Valvoline operates the second largest quick lube service chain by number of stores in the United States, with Valvoline Instant Oil ChangeSM , and the third largest quick lube service chain in Canada, with the Valvoline Great Canadian Oil Change brand. Based on currently available information, Valvoline has a total of 1,595 system-wide stores.
With a presence in more than 140 countries and territories, Valvoline’s Global Products segment sells lubricants and other automotive and engine maintenance products primarily to automotive retailers, installers and original equipment manufacturers (OEMs).
Valvoline was separated from parent company Ashland Global Holdings Inc. in 2017, following an initial public offering in 2016.
Following the closing of the transaction, Valvoline will own the Valvoline brand for all retail services purposes globally, excluding China and certain countries in the Middle East and North Africa, while Aramco will own the Valvoline brand for all products uses globally.
Valvoline and Aramco will expand their existing partnership to ensure that Valvoline’s iconic brand is managed in a consistent and holistic manner. In addition, Valvoline will procure motor oil and related products from the Global Products business through a long-term supply agreement.
