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 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.
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LNG World News Staff, January 29, 2012; Image: ExxonMobil