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RIYADH: Saudi Arabian Oil Co., also known as Aramco, plans to complete Valvoline Global Products acquisition by early 2023, Mohammed Y. Al-Qahtani, Aramco’s downstream senior vice president, told Arab News.
In early August, the oil giant announced that it had signed an SR9.9 billion ($2.65 billion) equity purchase agreement to acquire the US-based company.
Because VGP is a leading worldwide independent producer and distributor of premium branded automotive, commercial and industrial lubricants and automotive chemicals, it perfectly fits within the company’s base oil portfolio and lubricant growth strategy, Al-Qahtani said.
With this acquisition, he added that Aramco would expand its research and development activities and its partnership with original equipment manufacturers. The buyout will also complement its line of premium branded lubricant products.
Mohammed Y. Al-Qahtani, Aramco’s downstream senior vice president
• With this acquisition, the official said Aramco would expand its research and development activities and its partnership with original equipment manufacturers.
• The buyout will also complement its line of premium branded lubricant products.
• VGP will acquire perpetual ownership of the Valvoline brand, trademarks and copyrights in the products sector, he said.
“Valvoline and Aramco will expand their existing partnership to ensure that Valvoline’s iconic brand is managed in a consistent and holistic manner,” he said.
VGP will acquire perpetual ownership of the Valvoline brand, trademarks and copyrights in the products sector, Al-Qahtani informed.
As the crude producer seeks to expand the brand globally, VGP’s robust manufacturing and distribution network, significant R&D capabilities, strong partnerships with major OEMs and 150-year brand recognition will benefit the company, he added.
Talking about Aramco’s plans for the VGP employees, Al-Qahtani said: “VGP employees will be part of a company with the experience and platform to drive the success of the business going forward. Aramco appreciates the benefits of the talented VGP team around the globe driving the long-term success of the business.”
Al-Qahtani further stated that this transaction contributes significantly to Saudi Aramco’s 2030 strategic target of selling finished lubricants.
He said Aramco would own the Valvoline brand worldwide after closing the deal. For retail services, Valvoline will hold the Valvoline brand globally, excluding China and certain Middle Eastern and North African countries.
Through a long-term supply agreement, Valvoline will also procure lubricants from Global Products.
Commenting on the acquisition, Sam Mitchell, Valvoline CEO, previously said that the sale of VGP represented the successful outcome of its strategy to unlock the full, long-term value of its strong, but differentiated retail services and global products businesses.
Mitchell added that he was pleased that the company’s global products team would have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader.
RIYADH: The chairman of the Egyptian Media Production City Co. on Sunday refuted reports claiming Saudi Arabia’s Public Investment Fund was mulling investing in the company. “There are no negotiations, either from near or far, about selling a share of the Egyptian Media Production City Co. to the Saudi sovereign fund,” Abdel Fattah Al-Jabali told Asharq. Asharq also reported that two unnamed sources revealed that the PIF did not express any interest in acquiring stakes of the Egyptian company. PIF, earlier this month launched, the Saudi Egyptian Investment Co. to invest in a wide range of sectors across the North African country.
CAIRO: Iraq’s foreign currency reserves are now above $80 billion and are expected to hit $90 billion by the end of the year, state news agency INA cited the deputy governor of the central bank, Ammar Khalaf, as saying on Sunday.
The central bank’s gold reserves have climbed 30 tons to stand at more than 131 tons now, Khalaf said.
Turkish central bank may cut loan rates
Turkey’s central bank is expected to take steps soon to bring lending costs closer to its newly cut policy rate, especially for some corporate loans, three bankers told Reuters, after the bank said spreads between the two rates had widened.
The central bank unexpectedly cut its policy rate by 100 basis points to 13 percent on Thursday, despite 80 percent inflation. It cited the widening gap between its policy rate and rising lending rates as having reduced the effectiveness of its monetary policy.
The central bank “decided to further strengthen the macroprudential policy set with tools supporting the effectiveness of the monetary transmission mechanism,” its policy committee said.
Polish PM sees GDP growth
Poland’s economic growth in 2022 may be around 5 percent, the prime minister said on Friday, as economists warn of a slowdown in the country.
Seasonally-adjusted Polish gross domestic product fell by 2.3 percent quarter-on-quarter, indicating that a slowdown in domestic demand, rising interest rates, and companies’ surging costs amid double-digit inflation have started to dampen growth. Read full story
“Economic growth this year may hover around 5 percent,” Prime Minister Mateusz Morawiecki told a news conference.
(With input from Reuters)
RIYADH: Saudi Arabia’s benchmark index ended its first trading session of the week lower as investors raised questions over fluctuations in oil prices over the past week and higher inflation.
The Tadawul All Share Index ended the session 0.53 percent lower at 12,554, while the parallel market, Nomu, finished 0.44 percent higher at 21,668.
In the energy market, Brent crude reached $96.72 a barrel last Friday, while US West Texas Intermediate traded at $90.77 a barrel.
Saudia Dairy and Foodstuff Co. surged 10 percent to lead the gainers, following a 48 percent profit surge in the second quarter of 2022 to SR56 million.
Saudi Aramco lost 0.76 percent, despite announcing last Sunday that it achieved its highest quarterly profit since going public in 2019 with SR182 billion ($48.4 billion).
Saudi Automotive Services Co. shed 3.74 percent, despite a 57 percent increase in profits to SR38 million through the first half of 2022.
The Mediterranean and Gulf Insurance and Reinsurance Co., known as MEDGULF, lost 4.29 percent, after it turned into losses of SR131 million in the first half of 2022.
SABB Takaful Co. increased 1.86 percent, following a 15 percent increase in first-half profits to SR5.6 million.
Gulf Union Alahlia Cooperative Insurance Co. declined 0.31 percent, after its first-half losses narrowed by 82 percent to SR19 million as a result of lower net claims.
Saudi Reinsurance Co. dropped 3.13 percent, after net profit before Zakat dipped 62 percent to SR14 million in the first half of 2022.
Saudi Arabian Amiantit Co. declined 2.14 percent, despite its half-year losses shrinking by 83 percent to SR10 million.
Jabal Omar Development Co. dropped 0.17 percent, after its first-half losses widened by 316 percent to SR311 million.
Saudi Pharmaceutical Industries and Medical Appliances Corp. dropped 5.07 percent, after it swung to losses of SR21 million during the first half of 2022.
RIYADH: The Saudi Grains Organization paid SR60.9 million ($16.2 million) to 104 local farmers following the procurement of 34,489 tons of wheat, said a SAGO statement
The organization allocates a certain quantity of wheat to be purchased by local farmers every season. During the current wheat season, the SAGO spent SR654 million to purchase local produce.
It is part of the government’s initiative to ensure food security and support local farmers.
BEIJING: Russia held its spot as China’s top oil supplier for a third month in July, data showed on Saturday, as independent refiners stepped up purchases of discounted supplies while cutting shipments from rival suppliers such as Angola and Brazil.
On the other hand, imports from second-ranking Saudi Arabia rebounded last month from June, which was the lowest in more than three years, to 6.56 million tons, or 1.54 million barrels per day, but still slightly below year-ago level.
Year-to-date imports from Russia totaled 48.45 million tons, up 4.4 percent on the year, still trailing behind Saudi Arabia, which supplied 49.84 million ton, or 1 percent percent below the year-ago level.
Imports of Russian oil, including supplies pumped via the East Siberia Pacific Ocean pipeline and seaborne shipments from Russia’s European and Far Eastern ports, totaled 7.15 million tons, up 7.6 percent from a year ago, data from the Chinese General Administration of Customs showed.
Still, Russian supplies in July, equivalent to about 1.68 million bpd, were below May’s record of close to 2 million bpd. China is Russia’s largest oil buyer.
China’s crude oil imports in July fell 9.5 percent from a year earlier, with daily volumes at the second lowest in four years, as refiners drew down inventories and domestic fuel demand recovered more slowly than expected.
The strong Russian purchases squeezed out competing supplies from Angola and Brazil, which fell 27 percent year-on-year and 58 percent, respectively. Customs reported no imports from Venezuela or Iran last month. State oil firms have shunned purchases since late 2019 for fear of falling foul of secondary US sanctions. Imports from Malaysia, often used as a transfer point in the past two years for oil originating from Iran and Venezuela, soared 183 percent on the year, to 3.34 million tons, and up from June’s 2.65 million tons.