Aramco to acquire Chilean company Esmax to bolster downstream business
Aramco, a global leader in integrated energy and chemicals, has finalized a deal to buy a 100% equity stake in Esmax Distribusción SpA from Southern Cross Group, a private equity firm focused on Latin America. The acquisition is pending regulatory approval and other customary conditions. Esmax is a prominent downstream fuels and lubricants retailer with a national footprint in Chile, featuring retail fuel stations, airport operations, fuel distribution terminals, and a lubricant blending plant.
Strategic Implications for Aramco’s Downstream Value Chain
The Esmax acquisition represents Aramco’s initial investment in South America’s downstream retail sector and aligns with the company’s strategy to fortify its downstream value chain. The transaction enables Aramco to diversify its retail portfolio globally while securing outlets for its refined products. In addition, this acquisition opens up new market possibilities for Valvoline branded lubricants, which became a part of Aramco following its acquisition of the Valvoline Inc. global products business in February 2023.
Quotes from Aramco Leadership
Mohammed Y. Al Qahtani, Aramco Downstream President, expressed, “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. 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. Esmax is a well-run business in Chile with more than 100 years of experience with quality assets and growth potential. We are excited to have the outstanding people of Esmax join the Aramco family as we continue to execute on our downstream strategy.”
This acquisition reinforces Aramco’s focus on growing its downstream value chain and is seen as a significant step in exploring South American markets that are increasingly recognized for their potential and attractiveness.