Exxon Mobil, the largest U.S. oil company, will sell three of its Malaysian businesses to San Miguel, the largest Philippine food and drinks company, for a combined $610 million, according to a regulatory filing filed on the Kuala Lumpur stock exchange.
San Miguel will acquire Exxon's entire 65% stake in Esso Malaysia for about $206 million, Bloomberg News reported. The Philippine company will also pay a combined $403 million for ExxonMobil Malaysia Sdn. and Exxon Mobil Borneo Sdn. The asset sales are part of a previously announced by plan by Exxon to part with some non-essential global assets.
The takeovers would provide San Miguel with downstream interests including seven fuel distribution terminals and a network of 560 service stations, Bloomberg reported. Like other oil majors, Texas-based Exxon (XOM) has been looking to part with downstream assets amid weak refining margins.
The transaction has no impact on ExxonMobil's Upstream interests in Malaysia, where it is active in petroleum and natural gas exploration and production through its affiliate ExxonMobil Exploration and Production Malaysia, according to a statement issued by the company.