Saudi Arabia’s Dabbagh Said to Work With JPMorgan on Stake Saleby and
Saudi Arabia’s Dabbagh Group is reviving plans to sell a minority stake in its lubricants and automotive services unit Petromin Corp, people with knowledge of the matter said.
Dabbagh is working with JPMorgan Chase & Co. on the sale of about 20 percent of the business, the people said, asking not to be identified as the information is private. The company could be valued at about $1.5 billion, the people said, though no final agreements have been reached and talks may still falter.
Dabbagh Group, a family-owned group with interests from automobiles to real estate and food, bought a 49 percent stake held by India’s Hinduja Group to take full control of Petromin in 2013. The family-owned firm canceled plans to sell a 20 percent stake in 2014 and was also weighing an initial public offering.
Petromin, the Middle East’s oldest lubricants business formed by royal decree in 1968, makes more than 150 products and exports to more than 35 countries in the Middle East, Africa and Asia, according to its website. The company recently acquired Nissan Motor Co.’s franchise in the kingdom, expanding into automotive sales and servicing.
A representative for Jeddah-based Dabbagh Group didn’t immediately comment, while JP Morgan declined to comment.