ExxonMobil is going to sell 99% of its Japanese unit to TonenGeneral

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TonenGeneral Sekiyu KK, Second largest refiner in Japan, has reported on Sunday that it will purchase 99% of shares in Japanese unit of ExxonMobil i.e. ExxonMobil Yugen Kaisha. This purchase will be of 302 billion yen ($3.9 billion) and the deal will be finished in June.

ExxonMobil Yugen Kaisha is mainly involved in fuel, chemical and lubricant marketing.

At the present time, ExxonMobil has almost 50% of the Japanese refiner. With this deal, ExxonMobil is going to shrink its business in Japan as reported by Nikkei business daily and according to TonenGeneral this deal will help it to “achieve more nimble operations capable of adjusting to domestic market changes.”

According to experts, this deal comes in the time of falling demand as a result of somewhat weak economy in Japan and a change to more efficient and environmentally friendly forms of energy.

“Oil demand in Japan has declined in recent years and the domestic operating environment has been characterized by continuous pressure on both margins and volumes,” TonenGeneral said.

TonenGeneral has reported that it will continue the stable dividend and there are no plans to alter 38 yen per share of 2011 full year predicted dividend.

Further Reading:

TonenGeneral Sekiyu K.K

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