US oil & gas giant Exxon Mobil Corp. (NYSE: XOM) has agreed to sell 99% of its Japanese refining subsidiary to Japanese refiner TonenGeneral Sekiyu for $3.9 billion. The sale also includes the majority of Exxon’s share in TonenGeneral, leaving the US company with a 22% stake in the Japanese refiner.
Exxon joins BP plc (NYSE: BP) and Royal Dutch Shell plc (NYSE: RDS-A) in shedding refining assets in developed nations where gasoline consumption is falling. Europe’s largest refiner, Swiss-based Petroplus, recently filed for bankruptcy after its banks rejected pleas for additional credit to purchase crude.
It’s hard to see what TonenGeneral gains from this deal except for control of its own destiny and exclusive use of the Exxon brand in Japan. But at a pretty steep price, that the Japanse company plans to finance primarily with debt.
Exxon will retain its liquefied natural gas marketing and specialty chemicals businesses in Japan.
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