ExxonMobil and TonenGeneral Sekiyu K.K announced they have entered into an agreement that 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. The company expects that the changes will result in a single, integrated downstream business that is better positioned to meet Japan’s energy needs. The transaction is valued at approximately $3.9 billion.
ExxonMobil reportedly 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.
For more information, visitwww.exxonmobil.com.
ExxonMobil to Restructure Holdings in Japan
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