Aramco has reached an agreement to acquire a 100 percent equity stake in Esmax Distribusción (“Esmax”) from Southern Cross Group, a private equity firm with a focus on Latin America.
The completion of this transaction is contingent upon meeting customary conditions, which include obtaining regulatory approvals. Esmax holds a prominent position as a diversified downstream fuels and lubricants retailer in Chile.
Esmax acquired by Saudi Aramco
Esmax maintains a nationwide presence encompassing retail fuel stations, airport operations, fuel distribution terminals, and a lubricant blending plant.
The proposed Acquisition of Esmax marks its inaugural foray into downstream retail investment in South America. It underscores Saudi Aramco’s recognition of the immense potential and appeal of these markets while aligning with the company’s strategic goal of fortifying its downstream value chain.
This transaction would serve to secure outlets for Saudi Aramco’s refined products and facilitate the international expansion of its retail business.
Additionally, this acquisition is poised to unlock fresh market opportunities for Valvoline branded lubricants, following the acquisition of the Valvoline global products business in February 2023.
Mohammed Y. Al Qahtani, Saudi Aramco Downstream President, expressed, “This agreement marks another significant milestone in our strategy to expand the downstream footprint worldwide, encompassing our retail, lubricants, and trading ventures. We are enthused by the possibilities it offers, fostering synergies with our extensive trading and manufacturing systems.”
He further added, “Moreover, it establishes a platform for introducing the brand to both Chile and the broader South American region, unlocking substantial potential in new markets for our products. Esmax is a well-established enterprise in Chile, boasting over a century of experience and holding quality assets with growth prospects. We eagerly welcome the talented team at Esmax to the Aramco family as we continue to execute our downstream strategy.”
