Saudi Arabia Oil Co., better known as Aramco, is buying the trading unit of U.S. refiner Motiva Enterprises LLC to expand its commodity business across North and South America.

Aramco

Under the agreement, Houston-based Aramco Trading Americas (ATA) would take over Motiva Trading and become the sole supplier and offtaker of Motiva Enterprises, North America’s largest refinery. 

With the purchase, the Saudi oil producer also launched Aramco Trading Americas LLC (ATC), headquartered in Houston. Aramco last year was said to be eyeing an initial public offering for the energy trading arm, which could be valued at $30 billion-plus, according to Bloomberg.

“The acquisition of Motiva Trading and the establishment of Aramco Trading Americas is a giant step toward executing our ambitious...