“The planned acquisition, which is subject to customary closing conditions including regulatory approvals, aims to capitalize on anticipated growth of the high-value fuels market in the Philippines,” Aramco said in a statement on its website.
“It represents further progress in Aramco’s strategic downstream expansion and growth of its global retail network, which aims to secure additional outlets for its refined products,” it added.
The deal value was not disclosed.
Big picture
The move signals Aramco’s readiness to raise competition in the Philippines after selling its stake in Petron in 2008. The shares were later acquired by tycoon Ramon S. Ang-led San Miguel Corp., which remains the controlling shareholder of Petron.
After the deal is concluded, Aramco will bring its brand, competitive retail offerings, and Valvoline-branded lubricants to select retail stations in the Philippines.
Track record of nearly six decades
The deal comes less than a year after the passing of founder Paul Co in June last year.
The late company chair founded Unioil in 1966, starting as a lubricants blending business that has grown into a leading player in the petroleum industry.
“We are delighted with this new partnership with Aramco, which represents a major milestone in Unioil’s 58-year history. We are confident that this will equip us to accelerate our growth and development, further innovate and strengthen our position as a leader in the wholesale and retail fuels market,” said Janice Co Roxas-Chua, CEO of Unioil.
“The strategic investment by Aramco is fully in line with our ambition to be the fuel retailer of choice and support our customers with top-tier fuel solutions,” added Kenneth C. Pundanera, president of Unioil.
Aramco enters a ‘vibrant economy’
“This investment represents another step forward in our global strategy to expand Aramco’s retail network, and we look forward to introducing Aramco’s high-quality products and services to customers in the Philippines,” said Yasser Mufti, Aramco executive vice president of products and customers.
“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners. We are delighted to embark on the next stage of this journey with Unioil, a dynamic player in the fast-growing Philippines fuels market,” he added.
No. 3 player in the Philippines
Unioil is the country's third-largest petroleum company.
As of June last year, its market share stood at 8.1 percent, just behind Shell (13.6 percent) and Petron (24.9 percent), data from the Department of Energy showed.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
