Oil and gas exploration giant Exxon Mobil Corp. (XOM) Sunday said it decided to sell back a major portion of its refinery and sales operations in Japan to TonenGeneral Sekiyu KK in a $3.9 billion deal, as part of restructuring the company's holdings in Japan.
Through the sale, which will see the Texas-based Exxon's competitors entering the Japanese market, the company intends to concentrate more on the higher-profit oil and natural gas development, and shift focus to emerging markets amid falling oil demand in Japan.
Following the completion of the sale, Exxon Mobil, which currently holds more than 50 percent of TonenGeneral shares, will remain Tonen's biggest shareholder by retaining around 17 percent of its shares.
The company said the current management will remain in place until the completion of the sale, which is scheduled for early June. The integration is expected to benefit customers of ExxonMobil Japan Group, dealers and business partners.
Meanwhile, TonenGeneral Sekiyu will have exclusive, long-term use of ExxonMobil's existing brands for the sale of ExxonMobil products in Japan. TonenGeneral will continue to operate Exxon's gas stations across Japan under the Esso, Mobil and General brands.
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.
Exxon Mobil's third-quarter profit increased 41 percent from last year, reflecting higher prices and improved refining margins, despite lower production. Net income increased to $10.33 billion or $2.13 per share from $7.35 billion or $1.44 per share in the prior year, but slipped from $10.68 billion or $2.18 per share earned in the preceding second quarter.
XOM ended Friday's regular trading session at $85.83, down 1.08%, on around 15.98 million shares. During after-hours, shares gained 0.19%.
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