ExxonMobil Considers $1 Billion Sale of UK, Belgian Chemical Plants Amid Industry Struggles

ExxonMobil is considering the sale of its chemical plants in the UK and Belgium, worth up to $1 billion, as part of a potential divestment. The US energy supermajor has held early-stage discussions with advisers about selling the assets, which include the Fife ethylene plant in Scotland and several Belgian production facilities. The move comes amid strain on Europe's chemicals industry due to US tariffs and Asian imports. Exxon declined to comment on the report.

ExxonMobil, the global energy supermajor, is reportedly considering the sale of its chemical plants in the UK and Belgium, with a potential value of up to $1 billion. The Financial Times reported that the company is in preliminary discussions with advisers about selling these assets, including the Fife ethylene plant in Scotland and several Belgian production facilities. The move comes amidst significant economic pressures on Europe's chemicals industry, exacerbated by U.S. tariffs and increased competition from Asian producers, particularly China [1].

The divestment strategy aligns with ExxonMobil's broader efforts to optimize capital returns and adapt to decarbonization pressures. The company expects the proposed sale to close by the end of the fourth quarter of this year. The proceeds from these sales are expected to fund high-margin projects such as the Permian Basin expansion and the Golden Pass LNG project [2].

ExxonMobil's decision to sell its European chemical plants is part of a larger trend of asset rationalization within the energy sector. The global chemicals sector has seen a surge in M&A activity, with EV/EBITDA multiples for transition-ready assets reaching 9.0x in H1 2025. Buyers like North Atlantic are planning to repurpose sold assets into green energy hubs, reflecting a broader shift towards low-carbon infrastructure and the circular economy [3].

The energy sector's M&A landscape in 2024-2025 has been defined by a surge in large-scale divestitures and a focus on energy transition. Data from Bain & Company reveals that global energy sector M&A hit a three-year high of $400 billion in 2024, with 86% of deals exceeding $1 billion. Energy transition M&A alone reached $497 billion in 2024, representing 13.4% of global M&A activity [4].

ExxonMobil's divestments signal a paradigm shift in how energy companies evaluate mature hydrocarbon assets. The $1 billion sales in Europe and Singapore demonstrate that non-core assets are increasingly viewed as liabilities rather than long-term investments, particularly in regions with aggressive decarbonization policies. This trend is likely to intensify as governments worldwide implement stricter emission regulations, forcing companies to accelerate asset rationalization [2].

For M&A activity, the focus is shifting from cross-border megadeals to targeted acquisitions that enhance operational efficiency and align with sustainability goals. ExxonMobil’s partnership with Trafigura-Entara’s Rhône Energies consortium to reposition France’s Gravenchon complex as a green energy hub exemplifies this approach, blending divestiture with strategic collaboration [5].

ExxonMobil's strategic shift aims to redirect capital toward high-return projects in the Permian Basin and low-carbon initiatives. The company has already announced plans to boost Permian Basin production from 1.6 million to 2.3 million barrels per day by 2030 and invest $10 billion in the Golden Pass LNG project [3].

ExxonMobil’s decision to sell its European chemical plants is part of a larger strategy to optimize capital returns and adapt to decarbonization pressures. The proceeds from these sales will fund high-margin projects, such as the Permian Basin expansion and the Golden Pass LNG project, which are expected to yield stronger returns [2]. This strategic pivot reflects a growing consensus among oil majors to offload non-core assets in favor of capital-efficient, low-carbon infrastructure and high-margin hydrocarbon projects.

References:
[1] https://seekingalpha.com/news/4492099-exxonmobil-eyes-1-billion-sale-of-chemical-plants-in-uk-and-belgium---report
[2] https://www.ainvest.com/news/exxonmobil-considers-selling-uk-belgium-plants-restructuring-efforts-2509/
[3] https://www.ainvest.com/news/exxonmobil-strategic-shift-implications-potential-european-chemical-plant-sales-2509/
[4] https://www.dlapiper.com/en/insights/publications/2025/02/energy-transition-ma-outlook-2025
[5] https://www.ainvest.com/news/exxonmobil-strategic-pivot-capitalizing-energy-transition-asset-divestitures-2505/