DUBAI, United Arab Emirates (AP) — Saudi Aramco on Monday announced a $2.65 billion deal to acquire Valvoline’s global products business, which includes motor oils, transmission fluids, coolants and other car care products.

Valvoline said the transaction will separate its global products from its retail services business, transforming it into a purely automotive service provider. The more than 150-year-old company operates and franchises approximately 1,700 service centers, with stores across the United States offering quick oil changes and other services.

Valvoline noted that the deal will also help it accelerate the focus on servicing electric cars. It is already one of the main suppliers of battery fluids to manufacturers of electric vehicles.

Valvoline said it plans to use the estimated net cash proceeds of $2.25 billion to return capital to shareholders through share buybacks, reduce debt and invest in its retail services business. . The deal is subject to regulatory approval, expected by the end of 2022 or early next year.

Aramco, Saudi Arabia’s state-owned oil company, has expanded its downstream business in recent years.

“Valvoline’s global product business is a perfect fit with Aramco’s growth strategy for lubricants, as it will leverage our global base oil production,” said Mohammed al-Qahtani, vice president Aramco Senior Downstream.

Once the agreement is concluded, Valvoline will own its brand for all retail services worldwide, except for China and certain countries in the Middle East and North Africa, while Aramco will own the Valvoline brand for all product uses worldwide. Valvoline said it would purchase motor oil and related products from the global products business under a long-term supply agreement.

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