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Investing.com -- Saudi Aramco (TADAWUL:2222), the world’s largest energy company, is reportedly considering an offer for lubricant assets being sold by BP (NYSE:BP) Plc, Bloomberg News reported today.
The assets, which operate under the Castrol brand name, are part of BP’s strategic review of its lubricant business. This review is a part of a larger corporate overhaul within BP.
Aramco could potentially merge the Castrol assets with its Valvoline (NYSE:VVV) lubricants unit, a business which it acquired in a $2.65 billion deal completed in 2023. The Middle Eastern company’s interest in these assets is part of its broader strategy to expand its presence in oil-consuming countries.
Castrol’s operations in rapidly developing markets such as India are of particular interest to Aramco. Castrol India (NSE:CAST) Ltd., a Mumbai-listed subsidiary of the company, currently has a market value of about $2.5 billion.
The sale of the Castrol lubricants business, as reported by Bloomberg News, could be worth approximately $10 billion. This potential acquisition would further deepen Aramco’s reach into global oil markets. The identities of the sources providing this information have been kept private.
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