Saudi Aramco completes $2.65bn purchase of Valvoline Inc.’s global products business

Aramco will own the Valvoline brand in connection with its product business (AFP)
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Updated 02 March 2023
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Saudi Aramco completes $2.65bn purchase of Valvoline Inc.’s global products business

Dhahran: Saudi Aramco has completed through a wholly owned subsidiary the acquisition of US company Valvoline Inc.’s global products business for $2.65 billion.

Under the deal, which came after the two companies signed a share purchase agreement announced on Aug. 1, last year, Aramco aims to become one of the most prominent integrated brands in the world in the field of lubricants.

Aramco will own the Valvoline brand in connection with its product business, while Valvoline will own the brand in connection with its retail services business, and the two firms plan to work together to further spread ownership of the Valvoline brand globally.

Headquartered in Lexington, Kentucky, Valvoline Global Operations will continue to be a world leader in automotive and industrial solutions, creating future-ready products and best-in-class services for partners around the globe.

The acquisition is expected to enhance Aramco’s growing presence in the premium brand lubricants market, while opening global horizons to promote the established name and provide a foundation for future growth and integration of its refining, chemicals, and marketing business portfolio.


Greta Thunberg says Trump ‘more dangerous’ but blasts Harris on Gaza

Updated 6 min 44 sec ago
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Greta Thunberg says Trump ‘more dangerous’ but blasts Harris on Gaza

STOCKHOLM: Swedish climate activist Greta Thunberg on Friday labelled Donald Trump the “more dangerous” option in next week’s US presidential election but slammed the incumbent administration for its support of Israel.
With the United States heading to the polls on November 5, the 21-year-old activist said in a post on X that it was “probably impossible to overestimate the consequences this specific election will have for the world and for the future of humanity.”
“There is no doubt that one of the candidates — Trump — is way more dangerous than the other,” Thunberg said.
But she also slammed sitting President Joe Biden and Vice President Kamala Harris — who is running against former president Donald Trump — for their backing of Israel and its offensive in Gaza.
“Let’s not forget that the genocide in Palestine is happening under the Biden and Harris administration, with American money and complicity,” Thunberg said.
“It is not in any way ‘feminist’, ‘progressive’ or ‘humanitarian’ to bomb innocent children and civilians — it is the opposite, even if it is a woman in charge.”
Hamas’s October 7 attack on Israel last year triggered the war in Gaza and resulted in 1,206 deaths, mostly civilians, according to an AFP tally of Israeli official figures.
Israel’s retaliatory bombardment and ground war have killed at least 43,259 Palestinians in Gaza, a majority of them civilians, according to data from the Hamas-run territory’s health ministry.
The United Nations considers these figures to be reliable.
Thunberg urged Americans to go beyond exercising their right to vote and take direct action such as protests and boycotts against the “catastrophic consequences of American imperialism.”
“My main message to Americans is to remember that you cannot only settle for the least worst option,” Thunberg said.

Pakistan’s national airline sale stalls as bid falls short of government expectations

Updated 27 min 11 sec ago
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Pakistan’s national airline sale stalls as bid falls short of government expectations

  • Sole bidder Blue World City declines to meet government’s minimum price of $305 million
  • PIA employees’ union labels the stalled sale an ‘embarrassment’ for Pakistani authorities

ISLAMABAD: Pakistan’s Privatization Ministry said on Friday the national airline’s privatization has stalled after months of efforts, as the sole bid came in “too low” compared to government expectations, which the airline employees’ union and an economist called a “major embarrassment” for the authorities.
The national flag carrier received a Rs10 billion ($36 million) bid from real estate development company Blue World City a day earlier for 60 percent Pakistan International Airlines (PIA) stakes during a televised auction, far below the minimum price of Rs85 billion ($305 million) set by the government.
The country plans to sell more than 51 percent of its stake in the loss-making national air carrier as part of economic reforms Islamabad agreed to with the International Monetary Fund (IMF) for a critical 37-month, $7 billion bailout deal approved in September.
Pakistan’s government pre-qualified six groups in June, but only the real estate development company met a Tuesday deadline to submit final documents to participate in the auction.
“The airline’s sale process has stalled for now, but the Privatization Commission Board will review the bid offer in its next meeting,” Dr. Ahsan Ishaq, a spokesperson for the Privatization Ministry, told Arab News, without specifying a date for the meeting.
“Finally, the matter will go to the federal cabinet for approval, but obviously, the bid is too low compared to government expectations,” he added. “Therefore, it may not receive formal assent.”
The state-owned Pakistan Television broadcast the bidding process live, with Blue World City as the sole bidder.
The $36 million bid was read out in front of government officials and financial advisers, which the PIA employees’ union later described as a “major embarrassment” for the authorities.
“The government should add at least twenty planes to the PIA fleet on dry lease to make it a profitable airline instead of selling it for peanuts,” said Hidayatullah, president of the PIA employees’ union, who goes by a single name, while speaking to Arab News.
“We will not allow the privatization of this national asset, and we will launch a nationwide protest if the government goes ahead with this bid,” he said.
During the bidding event, Blue World City Chairman Saad Nazir refused to match the government’s minimum price of Rs85 billion, saying, as per his company’s assessment, the offer made was “the best decision.”
The government’s initial plan was to finalize the PIA sale on the country’s Independence Day, August 14, but the plan was delayed following requests from bidders who were awaiting the airline’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe, which are currently banned.
The auction was postponed twice, first to September and then to October, but neither event materialized.
Dr. Vaqar Ahmed, a senior economist, said the government had failed to “hunt potential investors” for PIA ahead of the formal auction and did not organize roadshows to market the airline’s assets to attract major investors.
“Major foreign investors have already expressed serious reservations about difficulties in repatriating their profits from investments in various sectors,” he told Arab News. “Therefore, they were apprehensive about joining the bidding process.”
“The government should have initiated measures to address the concerns of major investors and businesses ahead of formally launching the auction process for PIA to attract a fair price for the airline,” he continued.
Official data available to Arab News shows that there are 88 commercially operated state-owned enterprises in Pakistan, with collective losses amounting to Rs730.258 billion ($2.61 billion) in the fiscal year 2022.
In its five-year privatization plan ending in 2029, the government approved 24 state-owned enterprises for sale, including PIA.
With a fleet of 34 aircraft comprising 17 Airbus A320s, 12 Boeing B777s, and 5 ATRs, PIA loses market share to Middle Eastern carriers, who dominate with 60 percent due to the absence of direct flights to key destinations.
The carrier has air service pacts with 87 countries and landing slots at significant destinations such as London Heathrow.
The reorganization plan will separate aviation-related operations from non-core components, thereby freeing the operating subsidiary from a large portion of legacy debt.


New Zealand reaches trade deal with Gulf states

Updated 01 November 2024
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New Zealand reaches trade deal with Gulf states

SYDNEY: New Zealand has reached a trade deal with the six-nation Gulf Cooperation Council, which includes Saudi Arabia and the UAE, that Wellington said would open up major opportunities for Kiwi exporters in the Middle East.

The trade pact would remove tariffs for 51 percent of New Zealand’s exports to the region from day one and deliver duty-free access for 99 percent of New Zealand’s exports over 10 years, New Zealand Trade Minister Todd McClay said in a statement late on Thursday.

“Successfully concluding a trade agreement with the GCC has been a long-standing ambition for successive governments for almost two decades,” McClay said in Doha.

The statement did not specify when the trade pact will become effective.

The agreement with the Gulf states comes after New Zealand reached a trade deal with the UAE in September.

Trade between New Zealand and the GCC is worth more than NZ$3 billion ($1.79 billion) annually. The Pacific island nation exported NZ$2.6 billion to the Middle Eastern member countries in the year to June 2024, which included NZ$1.8 billion of dairy, official data showed.


Pakistan’s Punjab seeks US expertise to combat Lahore’s growing smog crisis

Updated 32 min 11 sec ago
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Pakistan’s Punjab seeks US expertise to combat Lahore’s growing smog crisis

  • Maryam Nawaz Sharif discusses the issue with USAID officials, urges bilateral cooperation
  • Punjab CM also seeks collaboration in trade, renewable energy, health care and education

ISLAMABAD: The provincial administration of Punjab expressed interest in leveraging American expertise and technology to address environmental issues on Friday as pollution levels in the eastern city of Lahore has hit dangerous highs in recent weeks.
The idea of collaborating with the United States over the issue came up for discussion during a meeting between Chief Minister Maryam Nawaz Sharif and the officials of the United States Agency for International Development (USAID) amid Lahore’s consistent ranking among the world’s most polluted cities.
The Punjab administration has decided to tackle the issue head-on, rolling out several initiatives aimed at reducing the city’s hazardous smog such as implementing mandatory face masks, suspending outdoor school activities and a ban on fireworks for about three months.
The Punjab government also introduced “green lockdown” earlier this week to bolster these efforts, limiting pollution-heavy activities in the city’s worst-affected areas, though local media reports say the enforcement of these measures remains inconsistent.
The issue of air quality in Lahore was one of the focal points during Sharif’s meeting with the USAID officials at her office, according to a statement from the provincial government.
“During the discussion, matters of mutual interest, strengthening US-Pakistan relations and enhancing cooperation in various fields were addressed,” the statement said.
“Maryam Nawaz Sharif expressed Pakistan’s intent to benefit from the US expertise in green energy and advanced technology to combat climate change and environmental pollution,” it added.
Both sides also agreed to deepen collaboration in other areas, including trade, renewable energy, women’s economic empowerment, health care and education.
Sharif highlighted her government’s initiatives for women’s safety, such as the “panic button” and virtual police stations.
She noted that modern internships are being provided to nurture a skilled workforce within the province.
The chief minister emphasized that Pakistan, particularly under the present government, has made strides toward becoming safer and more peaceful, setting new benchmarks in governance and transparency.
She praised the country’s achievements in combating extremism and militancy, stressing the importance of further enhancing collaboration between Washington and Islamabad in the area.
The discussion also included opportunities to boost investment to meet future demands of the two countries and strengthen connections between their people.


Pakistan says working closely with Saudis to make $2.8 billion investment deals ‘operational’

Updated 43 min 5 sec ago
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Pakistan says working closely with Saudis to make $2.8 billion investment deals ‘operational’

  • The deals between Saudi and Pakistani companies were signed during Saudi investment minister’s visit to Islamabad in October 
  • Saudi Crown Prince Mohammed bin Salman this year reaffirmed commitment to expedite $5 billion investment package for Pakistan

ISLAMABAD: Pakistani information minister Attaullah Tarar said on Friday Islamabad was working closely with Riyadh to make “operational” $2.8 billion in investment deals signed last month, saying Prime Minister Shehbaz Sharif had discussed the investments with Saudi Crown Prince Mohammed bin Salman during a recent visit to Riyadh.
Saudi Minister for Investment Khalid bin Abdulaziz Al-Falih said on Wednesday 27 agreements and memorandums of understanding (MoUs) worth $2.2 billion that had been signed between Saudi and Pakistani businesses in October had been enhanced to $2.8 billion. The business-to-business deals, now enhanced to 34, were signed on Oct. 10 during Al-Falih’s visit to Islamabad with a delegation of top investors and entrepreneurs from the Kingdom. 
“The [Pakistani] prime minister met the Saudi crown prince in a great atmosphere,” Tarar told reporters. “And so more agreements have been signed and we discussed taking them forward, making them operational, work has already started on five [agreements].
“Talks on that also happened and we reaffirmed the commitment that we will enhance Saudi-Pakistan ties and expand investment and trade.”
Tarar said the $600 million additional investment from Riyadh was a “big step” and involved sectors such as energy, minerals, trade, livestock, human resource and IT.
Speaking about Sharif’s visit to Doha after Riyadh, Tarar said Qatar would invest $3 billion in Pakistan:
“In Qatar, [Prime Minister Shehbaz Sharif] has met a business delegation as well as the Qatari PM and emir of Qatar. Agreement has been made in expanding economic cooperation and relations in the field of culture. Discussions happened to further investment and trade also. I think this $3 billion investment will really boost Pakistan’s economy.”

Sharif’s visits to Doha and Riyadh took place at a time when Islamabad is seeking to strengthen trade and investment ties with friendly nations. Riyadh in particular has promised a $5 billion investment package that cash-strapped Pakistan desperately needs to shore up its dwindling foreign reserves and fight a chronic balance of payment crisis.
In 2022, the Qatar Investment Authority said it aimed to invest $3 billion in Pakistan. Doha has also shown interest in airport management partnership and the Roosevelt Hotel in New York’s Manhattan owned by the Pakistan International Airlines. 
During a visit to Qatar in 2022, Sharif, then in his first term as PM, invited QIA, Qatar’s $450 billion sovereign wealth fund, to invest in Pakistan’s energy and aviation sectors. He had previously mentioned renewable energy, food security, industrial and infrastructure development, tourism and hospitality, among sectors of interest.