Aramco Ventures into South American Downstream Market with Acquisition of Esmax

Saudi Aramco

In a significant development, Aramco, a global leader in energy and chemicals, has finalized plans to acquire a 100% equity stake in Esmax Distribuscion, a prominent downstream fuels and lubricants retailer based in Chile. The acquisition marks Aramco’s maiden venture into Downstream retail investment within South America, underscoring the company’s strategy to bolster its downstream value chain and tap into promising markets.

Esmax, a diversified downstream fuels and lubricants retailer with a national presence, operates retail fuel stations, airport operations, fuel distribution terminals, and a lubricant blending plant. The acquisition of Esmax is a strategic move that would provide Aramco with outlets for its refined products, aiding in the expansion of its retail business on an international scale. This endeavor also presents an opportunity to further market Valvoline branded lubricants, aligning with Aramco’s acquisition of the Valvoline Inc. global products business earlier this year.

The transaction, subject to customary conditions and regulatory approvals, is set to unlock new market opportunities for Aramco and solidify its position in the South American market. Mohammed Y. Al Qahtani, Aramco Downstream President, expressed enthusiasm for the prospects this acquisition offers, emphasizing the strategic growth it will fuel across Aramco’s downstream presence and retail, lubricants, and trading businesses.

“This agreement is yet another milestone in our strategy to grow Aramco’s downstream presence globally and expand our retail, lubricants, and trading businesses. 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 stated.

This acquisition aligns with Aramco’s strategic vision to broaden its global footprint and underscores its commitment to delivering quality products and services to consumers in emerging markets, reinforcing its position as an industry leader in the energy and chemicals sector.