The world’s most valuable company, Saudi Aramco has approached motor oil and lubricant maker Valvoline Inc about purchasing its commercial customer segment.
Valvoline, which is worth $5.4 billion as of Tuesday’s closing price, decided last year to split its retail services and global products divisions after conducting a strategic review.
In 2021, revenue from Valvoline’s global products unit accounted for approximately 59 percent of total sales. Consumers can also purchase “Do-It-Yourself” products from this division.
Valvoline shares, which have lost 20% of their value this year, rose 11.2 percent to $33.07 after the Wall Street Journal reported that Aramco had approached the Lexington, Kentucky-based company with a takeover offer.
Valvoline is also the world’s leading supplier of battery fluids to electric vehicle manufacturers and suppliers of oil and lubricants used in commercial vehicles and industrial equipment.
The two companies’ talks are in their early stages, and there is no guarantee that they will reach an agreement.