Informed sources told Archyde.com, on Wednesday, that the Saudi oil giant Aramco has expressed an interest in buying the global products unit of the Valvoline Company for the manufacture of car oils and lubricants.
Valvoline, which was valued at $5.4 billion at closing price on Tuesday, decided last year to separate its retail services from its global products division following a strategic review.
Revenue from the global Valvoline products unit accounted for about 59 percent of its total sales in 2021.
The company said it has not made a decision while it continues to work on the separation process.
Valvoline shares jumped 17% after the Wall Street Journal reported that Aramco approached the company about a takeover offer.
Shares of Valvoline, which have lost 20 percent of their value this year, jumped as much as 17 percent after the Wall Street Journal first reported that Aramco approached the Lexington, Kentucky, company about a takeover offer.
Valvoline is the world’s largest supplier of battery fluids to electric vehicle manufacturers and also manufactures automotive engine oils and lubricants for use in commercial vehicles and industrial equipment.
The Wall Street Journal report said the talks are at an initial stage and there is no guarantee that the two sides will reach an agreement.
(Archyde.com)