Exxon Mobil Corp. has agreed to enter exclusive negotiations with North Atlantic for the Canadian company’s potential takeover of a refining and petrochemical complex in France.
The 1,500-acre site in Gravenchon, Normandy hosts the second-biggest refinery in France and one of the largest integrated chemical complexes in Western Europe, North Atlantic noted. With two distillation trains, several conversion units and associated logistics facilities, the site can process up to 230,000 barrels a day of crude and other feedstocks.
The planned transaction involves the divestment of an 82.89 percent stake in Esso Société Anonyme Française SA (Esso SAF), which manages the refinery, and 100 percent of ExxonMobil Chemical France SAS (EMCF), which manages the site’s petrochemical operations, from ExxonMobil France Holding SAS to North Atlantic France SAS.
All affected employees, about 1,350, would be retained by the prospective new owner on the same employment terms, according to an online statement from ExxonMobil.
“ExxonMobil has been operating in France for over 120 years and we plan to maintain a significant commercial presence with the Esso brand at around 750 retail sites across the country”, said Tanya Bryja, senior vice president of ExxonMobil Product Solutions. “France remains an important market for us, and we will continue to support customers with sales of chemicals, finished lubricants, base stocks, synthetics, and other specialty products as well”.
ExxonMobil will keep trademark registrations and other intellectual property rights owned by Esso SAF and EMCF.
“ExxonMobil continually evaluates its business globally and the proposed sale is aligned with its business strategy”, the company said.
“Europe is an important region for ExxonMobil where there will continue to be a meaningful presence”.
ExxonMobil is high-grading its portfolio by selling non-strategic assets. The planned sale to North Atlantic follows ExxonMobil’s sale last year of the Fos-sur-Mer refinery in France to a Trafigura consortium, and earlier sales of refining stakes in Italy and Thailand.
North Atlantic president and chief executive Ted Lomond said, “This is a pivotal moment for North Atlantic as we enhance our transatlantic presence and commitment to energy security through innovative energy solutions aligned with global energy needs. We are eager to consolidate Gravenchon’s role as a vital center of French energy and industry for decades to come and grow North Atlantic into a premier transatlantic energy company”.
The purchase of Esso SAF has a price of EUR 149.19 ($168.15) per share before upward or downward adjustments and an agreed dividend distribution by Esso SAF before the completion of the transaction. “This price per share of Esso S.A.F. has been set assuming an amount of cash as of December 31, 2024 and not yet distributed equal to EUR 1,495,716,000, and a base purchase price for 100 percent of the shares of Esso S.A.F equal to EUR 422,000,000”, North Atlantic said in a separate press release.
“Given the level of available cash, ExxonMobil has agreed to use its commercially reasonable efforts to cause Esso S.A.F. to make an additional distribution prior to completion of the block acquisition up to EUR 63.36 per Esso S.A.F. shares (in addition to the distribution of a dividend of EUR 53 per Esso S.A.F. share submitted to the shareholders meeting to be held on June 4 2025 and to be paid (subject to approval by said shareholders meeting) on July 10, 2025)”, North Atlantic added.
Assuming the parties reach a definitive acquisition agreement, Noth Atlantic expects to complete the transaction by year-end, subject to the satisfaction of customary conditions. It expects to fund the acquisition by equity commitments from existing shareholders and external debt.
To contact the author, email jov.onsat@rigzone.com
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