Valvoline Lubricants Business Unit Sold to Saudi Aramco for $2.65B

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Valvoline ($NYSE:VVV) today announced that it has agreed to sell its lubricants business unit to Saudi Aramco for $2.65B pre-tax. This includes the sale of Valvoline’s global passenger car motor oil business, as well as its industrial lubricants business. The deal is expected to close in the fourth quarter of 2020, subject to customary closing conditions.

This is a significant move for Valvoline, as the sale of its lubricants business will allow the company to focus on its core business of automotive services. The proceeds from the sale are also expected to be used to reduce debt and bolster Valvoline’s balance sheet.

Market Price

The move comes as part of Saudi Aramco’s strategy to diversify its business portfolio and enter the automotive sector. The news of the sale has been well-received by the media and investors, with most commentators praising the move as a smart strategic decision by Saudi Aramco. On Thursday, VALVOLINE INC stock opened at $28.5 and closed at $29.0, up by 2.0% from previous closing price of 28.4.

Valvoline’s products are well-regarded in the industry, and the company has a strong presence in North America, Europe, and Asia. With this acquisition, Saudi Aramco is poised to become a major player in the global automotive market. Live Quote…

About the Company

VI Analysis

The company operates in the automotive industry and is engaged in the production and distribution of motor oil, chemicals and lubricants. According to the VI Risk Rating, VALVOLINE INC is a medium risk investment in terms of financial and business aspects. However, the company has issued 1 risk warnings in its income sheet. Overall, VALVOLINE INC is a strong company with a good financial position. However, investors should be aware of the 1 risk warning issued by the company. More…

VI Peers

The company has a long history of competition with its competitors, Petrol AD, CrossAmerica Partners LP, and Petronas Dagangan Bhd. Valvoline’s products are available in more than 100 countries and the company has a strong presence in North America, Europe, Asia, and Australia. Valvoline is committed to providing the highest quality products and services to its customers.

– Petrol AD ($LTS:0IMR)

Petrol AD is a Bulgarian oil and gas company with a market capitalization of 4.26M as of 2022. The company has a Return on Equity of -634.11%. Petrol AD is engaged in the exploration, production, refining and marketing of oil and gas. The company has operations in Bulgaria, Romania and Serbia.

– CrossAmerica Partners LP ($NYSE:CAPL)

CrossAmerica Partners LP is a wholesale distributor of motor fuels and convenience store operator in the United States. The company operates through two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessees, independent dealers, and other customers. The Retail segment operates company-operated convenience stores. As of December 31, 2020, the company operated 1,873 convenience stores in 35 states.

– Petronas Dagangan Bhd ($KLSE:5681)

Petronas Dagangan Bhd is a market leader in the retail and commercial segments of the Malaysian petroleum market. The company has a long-established reputation for providing high-quality products and services, and is committed to meeting the needs of its customers. Petronas Dagangan Bhd has a strong financial position, with a market capitalisation of 21.16 billion as of 2022 and a return on equity of 9.86%. The company is well-positioned to continue its growth and success in the future.

Summary

Valvoline’s products include motor oil, transmission fluid, brake fluid, and grease. The company also provides a variety of automotive services, such as oil changes, tune-ups, and engine repairs. Valvoline’s strong brand and reputation, along with its diversified product portfolio and global reach, make it an attractive investment opportunity. The company’s products are used in a wide range of vehicles, from cars and trucks to boats and motorcycles.

This gives Valvoline a broad customer base, which helps to insulate it from economic downturns. Valvoline’s products are also backed by a team of expert technicians who can provide customers with the service and support they need.