Saudi Aramco is considering acquiring Valvoline Inc.'s unit that sells lubricants among other automotive products to commercial customers, Wall Street Journal first reported citing sources familiar with the matter.
The Saudi oil giant has approached Valvoline to acquire its global products business, Bloomberg reported citing unidentified people familiar with the matter too. The talks between the two entities are still in the early stages and there is no guarantee that the two sides would reach an agreement.
While Aramco declined to comment, a representative for Valvoline said in a statement that "Valvoline continues to work on its previously announced separation process with the goal of maximizing shareholder value and setting both businesses up for long-term success," "There is a rigorous process in place to determine the optimal path, but no decisions have been made and we have no additional comment at this time."
In October 2021, theKentucky-based lubricant maker announced its plans to separate its retail services and global products businesses.
Valvoline stock soared to $33.07 on Wednesday after the Wall Street Journal announced the news, giving the company a market value of about $5.8 billion.