The Competition Commission of India (CCI) on Wednesday approved the acquisition of 100% equity of VGP Holdings LLC by Gateway Velocity Holding Corp, a wholly owned subsidiary of Saudi Aramco. The deal was announced in August last year.
VGP Holdings LLC, a subsidiary of US motor oils and lubricants group Valvoline Inc, sells Valvoline and other branded and private label automotive and engine preventive maintenance products.
The proposed combination involves the acquisition of 100% of the issued and outstanding capital stock and sole control of VGP Holdings LLC.
In August 2022, the Saudi Arabian Oil Company (Saudi Aramco) said they have signed an equity purchase agreement to acquire Valvoline’s global product business (VGP) for $2.65 billion.
In a tweet on Wednesday, CCI said it approved “the acquisition of 100 percent of the issued and outstanding share capital and sole control of VGP Holdings LLC, a subsidiary of Valvoline Inc by Gateway Velocity Holding Corp, a wholly owned subsidiary of Saudi Arabian Oil Company (Saudi Aramco).”
Gateway Velocity Holding Corp is engaged in the exploration, drilling and extraction of hydrocarbon substances, while Saudi Aramco (through its subsidiaries) is primarily engaged in the marketing and sale of hydrocarbons and derivatives.
Bids that exceed a certain threshold must be approved by CCI, which keeps a tab on unfair business practices and promotes fair competition in the market.
The apex court, however, directed the company to deposit an additional 10% total penalty (in addition to the amount already subsisting on the 10% deposit before the NCLAT). “The company will comply with the instructions and the said additional penalty amount of 10% will be deposited within the stipulated time as mentioned in the order passed by the Hon’ble Supreme Court,” UBL said in a filing of BSE.
