Valvoline Kuwait

A Bright Future:

Two Powerful Brands Coming Together

Aramco’s Acquisition of Valvoline Global Products Aramco completed the acquisition of Valvoline's Global Products business (now known as Valvoline Global Operations) for $2.65 billion in cash in March 2023. This strategic move was designed to merge the strengths of a major energy producer with a globally recognized lubricant brand.

Market Impact and Strategy The acquisition has a significant impact on the global lubricants market and the strategy of both companies:

For Aramco:

The purchase allows Aramco, one of the world's largest suppliers of base oils (the main ingredient in lubricants), to become a major integrated player in the premium branded lubricants space. It optimizes their upstream base oil production by securing a high-value downstream outlet, strengthens their OEM relationships (Original Equipment Manufacturers), and accelerates their global growth strategy.

For Valvoline Inc.:

The company shifted its focus entirely to the high-growth Retail Services sector. This new concentration allows Valvoline Inc. to better capitalize on opportunities in preventative auto maintenance, including the evolving market for hybrid vehicles

Aramco's Origin Story

Aramco traces its beginnings to 1933 when a Concession Agreement was signed between Saudi Arabia and the Standard Oil Company of California (SOCAL, also known as today's Chevron). A subsidiary company, the California Arabian Standard Oil Company (CASOC), was created to manage the agreement.

This company would go on to add more American partners as they explored the Arabian desert looking for oil. In 1938, the foundation of the future prosperity of Saudi Arabia and the success of Aramco were realized with the commencement of commercial oil production from Dammam No. 7 — the aptly named “Prosperity Well.”