Aramco has announced a 100% acquisition of Esmax Distribution SpA from Southern Cross Group in South America.
Esmax is a leading diversified downstream fuels and lubricants retailer in Chile. In 2022, Esmax, which also distributes Petrobas fuel in Chile, recorded revenue equivalent to $2.5 billion and a profit of $57.7 million.
Aramco’s acquisition of Esmax, is the company’s first downstream retail investment in South America. The transaction, subject to customary conditions and regulatory approvals, will provide Aramco access to retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant.
“This agreement is yet another milestone in our strategy to grow Aramco’s downstream presence globally and expand our retail, lubricants, and trading businesses. We are excited by the opportunities it presents, creating synergies with our extensive trading and manufacturing systems,” said Mohammed Y. Al Qahtani, Aramco Downstream President
This agreement would also enable Aramco to secure outlets for its refined products and help expand its retail business internationally.
“Moreover, it creates a platform to launch the Aramco brand both in Chile and South America more broadly, unlocking significant potential to capitalize on new markets for our products,” Al Qahtani added.
The acquisition will further unlock new market opportunities for Valvoline branded lubricants, following Aramco’s acquisition of the American retail automotive services Valvoline Inc. global products business for $2.65 billion in February 2023.