ExxonMobil to sell stake in Thai business for $603m | Economy

Bangchak says buy of controlling stake in Esso Thailand to be accomplished in second half of 2023.

Thailand’s power conglomerate Bangchak will purchase a two-thirds stake in ExxonMobil’s Thai enterprise in a deal valued at 20.1 billion baht ($603m), the 2 corporations have introduced.

Bangchak stated its buy of the controlling stake in Esso Thailand, valued at 55.5 billion baht ($1.6 billion) in complete, is anticipated to be accomplished within the second half of this 12 months for a worth that’s but to be decided.

The power firm stated it could search to purchase the remaining stake after the sale is accomplished.

Below the deal, Bangchak is ready to achieve management of a significant refinery and a community of 700 Esso-branded stations.

“This funding is a step in direction of higher power safety, balancing our long-term technique with power affordability and sustainability,” Chaiwat Kovavisarach, Bangchak Group’s chief government officer and president, stated in an announcement.

“I consider this transformational transaction marks the start of a brand new chapter for BCP and for Thailand.”

ExxonMobil will proceed to have a presence in Thailand by way of a brand new firm that can promote completed lubricants and chemical merchandise.

“As we execute our technique, ExxonMobil is focusing its investments on world manufacturing services to fulfill the world’s demand for lower-emissions fuels and high-performance merchandise, whereas divesting property the place others see the potential for higher worth,” Karen McKee, president of ExxonMobil Product Options, stated in an announcement.

“We respect the expertise and dedication of our colleagues in Thailand who’ve safely supplied dependable product provide to the Thailand and Larger Mekong markets for greater than 125 years, and we thank them for his or her devoted service.”

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