Aramco completes acquisition of 100% stake in Chile’s Esmax
Now Reading
Aramco completes acquisition of 100% equity stake in Chile’s Esmax

Aramco completes acquisition of 100% equity stake in Chile’s Esmax

The deal, which was first announced last September, represents the company’s first downstream retail investment in South America

Avatar
Aramco

Saudi Aramco has completed the acquisition of a 100 per cent equity stake in Chile’s downstream fuels and lubricants retailer Esmax Distribución.

Esmax distributes Petrobas fuel in Chile. The transaction will give Aramco access to retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant.

The deal, which was first announced last September, represents the company’s first downstream retail investment in South America.

The state-energy giant said it recognises the potential and attractiveness of this market and the acquisition of Esmax will advance the company’s strategy of strengthening its downstream value chain.

“Aramco aims to be a primary global retail player and this deal combines our high-quality products and services, including Valvoline lubricants, with the experience and quality of an established operator in Chile,” said Yasser Mufti, Aramco executive vice president of Products & Customers.

The transaction will enable the energy firm to secure outlets for its refined products and help expand its retail business internationally.

It is further expected to further unlock new market opportunities for Valvoline branded lubricants, following the acquisition of the company’s global products business for $2.65bn in February 2023.

Aramco boosts base oil portfolio

Meanwhile, Aramco is investing heavily in fuels and petrochemicals to diversify from crude oil sales, while tapping tap demand in new markets.

The company’s capital expenditures in the first nine months of 2023, surged by 12.3 per cent to SAR21.8bn ($5.8bn) compared to SAR19.4 ($5.2bn) for the same period a year ago amid ongoing investments and expansion into new markets.

Last December, the oil firm agreed to acquire a 40 per cent stake in fuel distributor Gas & Oil Pakistan (GO), marking its foray into the South Asian nation.

The deal will allow the Riyadh-listed energy firm to secure additional outlets for its refined products. It will further provide new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline global products business in February 2023.

The energy firm purchased a stake in a 211,000 barrels-a-day refinery in Poland in January 2023 to take advantage of Europe’s pivot away from Russian energy supplies. It also completed the SAR784bn acquisition of a 10 per cent stake in China’s oil refining giant Rongsheng Petrochemical (Rongsheng) through its subsidiary, Aramco Overseas Company, in July.

With a market capitalisation of $2.04tn (SAR7.6tn) as of March 04, 2024, Aramco’s third-quarter net profit plunged by 23 per cent, marginally beating analyst estimates, on lower crude oil prices and volumes sold.

The company is set to announce its 2023 full-year results in March.

Read: Aramco inks $6bn supply chain deal, boosts Jafurah field gas reserves

You might also like


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top