ExxonMobil has announced plans to restructure its Japanese operations together with TonenGeneral Sekiyu to create a single, integrated downstream business. TonenGeneral Sekiyu has agreed to purchase ExxonMobil’s shares in ExxonMobil Yugen Kaisha, integrating ExxonMobil Yugen Kaisha’s marketing operations with its existing business, in a deal worth roughly $3.9bn.
A company statement said that the deal " will result in a single, integrated downstream business better positioned to meet Japan’s energy needs," and that existing agreements with ExxonMobil Japan customers, dealers and partners will remain in place. The management team will remain in place until the transaction closes in the middle of 2012.
ExxonMobile is the largest shareholder in TonenGeneral Sekiyu and will remain so on completion of the transaction, the company says. Exxon anticipates ongoing involvement on theboard of the company, which will have exclusive, long-term use of ExxonMobil’s existing brands in Japan. ExxonMobil will also provide ongoing technology support, including technical assistance from ExxonMobil Research and Engineering, along with international crude, feedstock and fuels supply services.
In addition to its continued involvement in TonenGeneral Sekiyu, ExxonMobil's interests in Japan will include butyl, specialty elastomers, polyolefin, synthetics and catalyst businesses, International Marine lubricants, LNG marketing and sales, and upstream work. These interests have been excluded from the restructuring.
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