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Saudi Aramco shows interest in buying Valvoline’s commercial unit


© Reuters. FILE PHOTO – A view of branded oil tanks in Saudi Aramco’s Abqaiq oil facility, Saudi Arabia. October 12, 2019, 12:01 p.m. REUTERS/Maxim Shemetov

(Reuters) –Oil giant Saudi Aramco According to sources, (TADAWUL) has reached out to Valvoline (NYSE) Inc in order to purchase its section that serves commercial customers.

Valvoline’s value is $5.4 Billion as of Tuesday’s closing prices. The company had, last year, decided to split its global product and retail services divisions after a strategic review.

In 2021, 59% of Valvoline’s overall revenue came from its global products division. It also offers some DIY products for consumers.

The company stated that no decision had been made, even though it is continuing to work on the separation. Aramco has not yet responded to my request for comment.

Valvoline shares, which lost 20% so far in the year, rose 11.2% to $33.07, after Wall Street Journal reported that Aramco approached Valvoline’s Lexington, Kentucky,-based business with a deal.

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Valvoline also supplies the top battery fluids for electric vehicle manufacturers and suppliers, as well as oil and lubricants that are used in industrial vehicles and other equipment.

Journal reported that the talks between the companies were still at an infancy stage. There are no guarantees they would come to an agreement.