The Competition Commission of India (CCI) on Wednesday, February 22, approved the proposed acquisition of 100 percent equity of VGP Holdings LLC by Gateway Velocity Holding Corp.
The proposed combination relates to the acquisition of 100 percent of the issued and outstanding share capital and sole control of VGP Holdings LLC.
VGP Holdings LLC, a subsidiary of US motor oil and lubricants group Valvoline Inc, sells Valvoline and other branded and private label engine and automotive preventive maintenance products.
Gateway Velocity Holding Corp is a wholly-owned subsidiary of Aramco Overseas Company BV, which is a wholly-owned subsidiary of Saudi Arabian Oil Company (Saudi Aramco).
Saudi Aramco is primarily engaged in prospecting, exploring, drilling, and extracting hydrocarbon substances and processing, manufacturing, refining and marketing these substances.
In India, it is primarily engaged in the marketing and selling of hydrocarbons and derivatives (including polyethylene, polypropylene, resins, lubricants and base oils).
In August 2022, the Saudi Arabian Oil Company (Saudi Aramco) said it has signed an equity purchase agreement to acquire Valvoline's global products business (VGP) for $2.65 billion.
In a tweet on Wednesday (February 22), 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 affiliates) is primarily engaged in the marketing and selling of hydrocarbons and derivatives.
Deals beyond a certain threshold have to be approved by CCI, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
