We have all heard and read about Exxon looking to divestment low performing assets in various counties such as Iraq, Africa, etc. but EMCC was also looking for some divestment opportunities. This article was in Reuters few months ago - https://www.reuters.com/article/us-exxon-mobil-advanced-elastomer-system/exxon-explores-sale-of-elastic-polymer-business-sources-idUSKBN2BU2S8
Any news or update on this or other EMCC businesses divestment efforts
June 30, 2021 08:00 AM Eastern Daylight Time
Source: Business Wire
IRVING, Texas--(BUSINESS WIRE)--ExxonMobil Chemical Company has signed an agreement with Celanese for the sale of its global Santoprene™ business for $1.15 billion, subject to working capital and other adjustments.
The sale includes two world-scale manufacturing sites in Pensacola, Florida and Newport, Wales along with associated product, process development and laboratory equipment, operating and administration buildings, control systems and documentation, and intellectual property.
“Reaching this agreement with Celanese is consistent with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can leverage our competitive advantages of industry leading scale, integration and proprietary technology,” said Jack Williams, senior vice president of Exxon Mobil Corporation.
ExxonMobil’s Santoprene™ brand is a global leader in a specialized market. The company will continue to serve elastomers customers with specialty products, including Butyl rubber and Vistalon™, which are used in a variety of applications.
The transaction is expected to close in the fourth quarter of 2021, subject to regulatory, information and consultation processes, and third-party approvals.
The ExxonMobil employees impacted by the sale are expected to transfer to positions at Celanese following change-in-control.
“Reaching this agreement with Celanese is consistent with our strategy and allows us to focus on serving the growing market for primary olefin derivatives, where we can leverage our competitive advantages of industry leading scale, integration and proprietary technology”
Morgan Stanley & Co. LLC served as financial advisor to ExxonMobil Chemical Company.
Since selling off the business creates such value, why not sell the whole thing? Just think of all the value created!
@3tza+ Is the Baytown part of the rumor only the refinery? There is a pretty sizable chemical plant adjacent to the refinery. I would think it would be difficult to sever the Baytown Chemical Plant from XOM's Chemical Business. Just a few years ago, they built a new ethane cracker to supply the polyethylene business and there had been other units under construction before Covid hit.
Rumor is that Billings, Baytown, and Joliet are on the block. Baton Rouge is the leader for refining and chemicals and is not for sale. Exxon is looking to reduce production due to forecasted lower demand in the future and is looking to get the max for high cost and poorly run plants to pay down debt and buy back stock. The three refineries listed above were NSI.
The only business that anybody is aware of is Santoprene - a great product that is small in volume and we’ve mismanaged to the point where competition has more than caught up. I also seriously wonder about the viability of the butyl business over the long term as we’ve also let competition catch up and surpass us.
To whoever said we might sell the standalone sites - you must mean standalone refineries. Our standalone chemicals sites are the most profitable sites in the company right now. EMCC is the future of the company.
EMHC is up for divestment there was an open house last weekend
Pensacola is up for sale, that's all I've heard.
For upstreamers, the OP means EM CHEMICAL Company.
One of the interesting things is that we are SO siloed that career folks can’t talk to each other across the silos.
OP. Sorry I don’t have any real info for you, but check for any older, smaller facilities that don’t make great returns any more (like elastomers). Stand-alone sites may be targets also.
Baytown is for sale. Part of the Spring campus will be rented out to Amazon for warehouse space. Haven’t heard of any other liabilities up for sale.
OP here - not a troll! I am aware of the upstream assets for sale. Was just wondering what is going on in EMCC (not well connected in EMCC) and are they also considering some divestment.
If we could get Stephen King to design a dome over Afungi Peninsula, we’d be well on activity at Rovuma.
Barring that, see company sitting on it or selling it at discount.
Haven't heard an update on Savannah’s interest in EEPCI and TOTCO/COTCO, but that is one of 2 African projects to possibly be sold.
Other being MEGI which no updates recently. Trident or Kosmos may have interest?
Select assets in MPN.
They could end up like Bass Strait, Lena, SYU. We wanted to unload them, but no one will give us much of anything for these low ROI properties. At least Lena was finally written off for good.
If you weren’t aware of these, then you are a troll.