(EnergyAsia, January 30 2012, Monday) — US major ExxonMobil said it is restructuring its business in Japan that includes selling off its downstream business to partner TonenGeneral Sekiyu KK for US$3.9 billion.
As part of the takeover due for completion by mid-year, TonenGeneral will combined its manufacturing and refining operations with ExxonMobil Yugen Kaisha’s marketing operations to create a single, integrated downstream business better positioned to meet Japan’s energy needs.
The US major will retain a 22% stake in the Tokyo-based TonenGeneral which will end up owning 99% of ExxonMobil Yugen Kaisha.
ExxonMobil said it will remain TonenGeneral Sekiyu’s largest shareholder and anticipates continued participation on its board, subject to shareholder approval of its nominees. TonenGeneral Sekiyu will have exclusive, long-term use of ExxonMobil’s existing brands for the sale of the US major’s products in Japan.
ExxonMobil said it will continue to supply crude, feedstock, fuels services including international marine coverage services as well as provide technology support, including technical assistance from its research and engineering company.
The US major added that it will maintain its presence in Japan through businesses and partnerships excluded from the restructuring including its butyl, specialty elastomers, polyolefin, synthetics and catalyst businesses that includes its ownership in Japan Butyl Company.
With more than a century’s business presence in Japan, ExxonMobil said it will remain active in the country’s marine lubricants business, LNG marketing and sales, collaborations and partnerships with local companies in the upstream sector.
The ExxonMobil Japan Group comprises ExxonMobil Yugen Kaisha and its related companies and subsidiaries including TonenGeneral Sekiyu K.K. and Tonen Chemical Corp., and is a major manufacturer and marketer in Japan of petroleum fuels, lubricants and petrochemicals. ExxonMobil Yugen Kaisha is a 100% indirect subsidiary of Exxon Mobil Corporation.