ExxonMobil to Sell 82.9% of Esso Stake to North Atlantic for €149.19 per Share

ExxonMobil (XOM.US) has initiated exclusive negotiations with North Atlantic, a Canadian energy group, to sell 82.9% of its stake in its French subsidiary, Esso. The transaction is anticipated to conclude in the fourth quarter of this year, with a per-share price of 149.19 euros, excluding dividends, or 32.83 euros, including dividends.

The sale encompasses the Gravenchon refinery in Normandy, which is currently co-owned by Esso and ExxonMobil Chemical France, along with related assets. North Atlantic has expressed its intention to convert the Gravenchon plant into a green energy center. ExxonMobil will continue to supply North Atlantic with crude oil, which will be processed at the facility. The Gravenchon refinery is the second-largest refinery in France and one of the largest integrated chemical complexes in Western Europe.

This strategic move by ExxonMobil is part of a broader initiative to divest non-core assets and concentrate on more profitable and strategic areas of its business. The sale of Esso's stake aligns with this strategy, enabling ExxonMobil to streamline its operations and allocate resources more effectively. The transaction also underscores the increasing interest in green energy initiatives, as North Atlantic plans to repurpose the Gravenchon refinery for sustainable energy production.

The sale of Esso's stake is a pivotal development for both ExxonMobil and North Atlantic. For ExxonMobil, it signifies a strategic divestment that will allow the company to focus on its core operations and invest in areas with higher growth potential. For North Atlantic, the acquisition of Esso's stake presents an opportunity to expand its presence in the European energy market and contribute to the region's transition towards sustainable energy. The transformation of the Gravenchon refinery into a green energy center is a crucial component of this strategy, as it will enable North Atlantic to leverage its expertise in renewable energy and contribute to the reduction of carbon emissions.