The Competition Commission of India (CCI) on Wednesday granted its approval for the acquisition of 100 per cent 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 oil and lubricants group Valvoline Inc, sells Valvoline and other branded and private label engine and automotive preventive maintenance products.

The proposed combination relates to the acquisition of 100 per cent of the issued and outstanding share capital and sole control of VGP Holdings LLC.

In August 2022, the Saudi Arabian Oil Company (Saudi Aramco) said that they have signed an equity purchase agreement to acquire Valvoline's global products business (VGP) for USD 2.65 billion.

In a tweet on Wednesday, CCI said it approved, "acquisition of 100 per cent 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 extracting 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.

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