Saudi Aramco, which recently overtook Apple to become the world’s most valuable company, is reportedly considering acquiring the non-retail business of lubricant maker Valvoline.
Valvoline announced last year that it would be separating its Global Products and Retail Services businesses. While the Retail Services division focuses on consumer services like rapidly changing passenger car engine oil with Valvoline products, the Global Products segment, according to a press release from the company:
“Sells lubricants and other automotive and engine maintenance products primarily to automotive retailers, installers and original equipment manufacturers (OEMs). Valvoline has established itself as the world’s No. 1 supplier of battery fluids to electric vehicle manufacturers, offering tailored products to help extend vehicle range and efficiency.”
Reuters reports informed sources as saying that the mostly state-owned Saudi oil giant has approached Valvoline about buying the Global Products line, which accounted for 59% of Valvoline’s overall sales last year. In addition to being a popular lubricant brand for traditional passenger vehicles, the company also makes products for industrial equipment and commercial vehicles.
When approached to comment, Saudi Aramco failed to give a timely reply, while Valvoline said it was still working on separating the two divisions and no decision had been made yet. The talks are apparently at a nascent stage with no certainty that an agreement will be ultimately reached. Nevertheless, shares in the lubricant maker, which is currently valued at around $5 billion, rose 11.2% after the Wall Street Journal first broke the news of a possible acquisition.