Exxon Mobil Corp. (XOM) said it has entered into an agreement with TonenGeneral Sekiyu K.K that will result in the restructuring of ExxonMobil's holdings in Japan.
Under the terms of the deal, TonenGeneral Sekiyu will buy ExxonMobil's shares in ExxonMobil Yugen Kaisha for $3.9 billion, integrating ExxonMobil Yugen Kaisha's marketing operations with its existing manufacturing operations.
The ExxonMobil Japan Group comprises ExxonMobil Yugen Kaisha and its subsidiaries, including TonenGeneral Sekiyu K.K. and Tonen Chemical Corp. TonenGeneral Sekiyu, an affiliate of ExxonMobil Yugen Kaisha, which holds 50.02 percent of its shares, is listed on the 1st Section of the Tokyo Stock Exchange.
ExxonMobil said that current management will remain in place until closing of the transaction, 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.
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