Close 

ExxonMobil to sell Japan unit for $3.9 billion

ExxonMobil Corp. and TonenGeneral Sekiyu KK have entered into an agreement valued at $3.9 billion that will result in the restructuring of ExxonMobil’s holdings in Japan. Namely, TonenGeneral Sekiyu will acquire ExxonMobil’s shares in ExxonMobil Yugen Kaisha, integrating the marketing operations with its existing manufacturing operations. The deal will result in “a single, integrated downstream business better positioned to meet Japan’s energy needs,” the firms said.

ExxonMobil will remain TonenGeneral Sekiyu’s largest shareholder. TonenGeneral Sekiyu will have exclusive, long-term use of ExxonMobil’s existing brands for the sale of ExxonMobil products in Japan.

ExxonMobil will provide ongoing technology support, including technical assistance from ExxonMobil Research & Engineering. ExxonMobil also will provide international crude, feedstock and fuels supply services, including international marine coverage services.

Current management, the firms said, will remain in place until closing, which is expected in midyear.

Beyond its retained shareholding in TonenGeneral Sekiyu, ExxonMobil reported it will maintain a presence in Japan through businesses and partnerships excluded from the restructuring. These include:

• ExxonMobil’s butyl, specialty elastomers, polyolefin, synthetics, and catalyst businesses, including its ownership in Japan Butyl Co.

• International Marine lubricants.

• LNG marketing and sales, including LNG market development activities.

• Collaborations and partnerships with Japanese companies in the upstream sector.


To access this Article, go to:
http://www.ogj.com/content/ogj/en/articles/2012/01/exxonmobil-to-sell-japan-unit-for-39-billion.html