Saudi Arabian oil giant Aramco has agreed to purchase a 100% equity stake in Chile's Esmax Distribución SpA (Esmax) from Southern Cross Group, the company said in a statement on Friday.
"The transaction is subject to certain customary conditions, including regulatory approvals," the statement said.
Esmax is a leading diversified downstream fuels and lubricants retailer in Chile. Its national presence includes retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant.
“Aramco’s planned acquisition of Esmax would be its first Downstream retail investment in South America, recognizing the potential and attractiveness of these markets while advancing Aramco’s strategy of strengthening its downstream value chain,” said the statement.
“This transaction would enable Aramco to secure outlets for its refined products and help expand its retail business internationally. The acquisition would also further unlock new market opportunities for Valvoline branded lubricants, following Aramco’s acquisition of the Valvoline Inc. global products business in February 2023.”
Aramco Downstream President Mohammed Al Qahtani said the agreement creates a platform to launch the Aramco brand both in Chile and South America, “unlocking significant potential to capitalize on new markets for our products.”
“We are excited to have the outstanding people of Esmax join the Aramco family as we continue to execute on our downstream strategy,” he added.