Energy giant Saudi Aramco acquired US-based oil company Valvoline for $2.65 billion, bolstering its increasing presence in the high-end lubricants market and enhancing its brand’s global visibility.

As part of the deal, Saudi Aramco will own the Valvoline brand in connection with its product business, while Valvoline will retain its name with its retail services business, excluding China and some countries in the Middle East and North Africa region. 

According to the Saudi oil giant, the acquisition will enable the two companies to collaborate and expand the Valvoline brand’s ownership on a global scale and will advance its international lubricants growth strategy and leverage its global base oils production and expand its research and development activities.

Meanwhile, Aramco has signed a deal with French automaker Renault and China’s Geely Automobile Holdings to set up a new powertrain venture where the state-owned energy company will be “a potential minority stakeholder.”

Aramco said that Geely and Renault are expected to retain equal equity stakes in the joint venture, and the new company will be dedicated to internal combustion and hybrid powertrain technologies.