Raising Cash: Exxon to sell Tonen stake for $3.9b
The move could also spark realignment among Japan’s oil refiners.
TOKYO:
Exxon Mobil plans to sell a large part of its 50% stake in TonenGeneral Sekiyu KK back to its Japanese refining partner in a deal that could be worth about $3.9 billion, and will make an announcement as early as Monday, four sources with direct knowledge of the matter said. Exxon Mobil will retain about a 20% stake in TonenGeneral but the deal will mark a de facto retreat from the world’s third-largest economy by the US oil giant, which is focusing its resources on emerging markets and development of natural resources. The move could also spark realignment among Japan’s oil refiners, which have been cutting capacity to cope with falling demand caused by a weak economy and a shift to more efficient and environmentally friendly forms of energy, analysts have said.
Published in The Express Tribune, January 29th, 2012.
Exxon Mobil plans to sell a large part of its 50% stake in TonenGeneral Sekiyu KK back to its Japanese refining partner in a deal that could be worth about $3.9 billion, and will make an announcement as early as Monday, four sources with direct knowledge of the matter said. Exxon Mobil will retain about a 20% stake in TonenGeneral but the deal will mark a de facto retreat from the world’s third-largest economy by the US oil giant, which is focusing its resources on emerging markets and development of natural resources. The move could also spark realignment among Japan’s oil refiners, which have been cutting capacity to cope with falling demand caused by a weak economy and a shift to more efficient and environmentally friendly forms of energy, analysts have said.
Published in The Express Tribune, January 29th, 2012.