published Mon, January 30, 2012
ExxonMobil to restructure holdings in Japan
ExxonMobil and TonenGeneral Sekiyu K.K have entered into an agreement which will result in the restructuring of ExxonMobil’s holdings in Japan.
Under the terms of the agreement, TonenGeneral Sekiyu will
purchase ExxonMobil's shares in ExxonMobil Yugen Kaisha,
integrating ExxonMobil Yugen Kaisha's marketing operations with its
existing manufacturing operations. This will result in a single,
integrated downstream business better positioned to meet Japan's
energy needs. The transaction is valued at approximately US $3.9
billion.
The corporation anticipates the restructuring will be seamless
for ExxonMobil Japan Group customers, dealers and business partners
and expects existing agreements to remain unchanged. Current
management will remain in place until closing, which will occur in
mid-2012.
At closing, ExxonMobil will remain TonenGeneral Sekiyu's largest
shareholder and anticipates continued participation on its Board of
Directors, subject to shareholder approval of its nominees.
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 and
Engineering. ExxonMobil will also provide international crude,
feedstock and fuels supply services, including international marine
coverage services.
Beyond its retained shareholding in TonenGeneral Sekiyu,
ExxonMobil will maintain its presence in Japan through businesses
and partnerships excluded from the restructuring, including:
- ExxonMobil's butyl, specialty
elastomers, polyolefin, synthetics and catalyst businesses,
including its ownership in Japan Butyl Company;
- International Marine lubricants;
- LNG marketing and sales, including LNG
market development activities; and
- Collaborations and partnerships with
Japanese companies in the upstream sector.
ExxonMobil has conducted business in Japan for more than a
century. To strengthen its competitive position in the Japanese
market, the company has continuously innovated and adapted its
business model to meet the needs of Japanese society and its
changing business environment.
Date: 30/01/2012