ExxonMobil, owner of Esso and Mobil brands, has agreed to sell its interest in three businesses operating in the Malaysian downstream petroleum sector to San Miguel Corporation (SMC) of the Philippines. The deal is reported to cost SMC up to US$610 million in total or RM1.8 billion. It was previously reported that Boustead Holdings (owner of BHPetrol) and Shell Malaysia were among those interested in taking over ExxonMobil’s fuel stations.
The sale to SMC includes ExxonMobil’s 65% stake in Bursa listed Esso Malaysia Berhad (priced at US$206 million, much lower than market value), which operates a refinery in Port Dickson, as well as its wholly-owned ExxonMobil Malaysia Sdn Bhd and ExxonMobil Borneo Sdn Bhd affiliates. The latter two are involved in the retail, industrial and wholesale and aviation fuels businesses.
The physical assets in the transaction include the 88kbd capacity PD refinery which processes an average of 45,000 barrels of crude a day, equity interest in 10 fuel distribution terminals (7 of which are active) and around 560 retail fuel stations. Just last year, ExxonMobil spent a substantial RM90 million in a gas station upgrading exercise.
Despite the change of ownership, the refining, distribution and fuels marketing businesses will continue to operate as they do today under the new shareholder. The Esso and Mobil brands will remain in the market place for up to three years to facilitate SMC’s transition to a new retail fuels brand. The youngest fuel brand at present is BHPetrol, born out of BP’s sale of its retail business to Boustead in 2005.
However, this isn’t a total exit from Malaysia. The sale doesn’t affect ExxonMobil’s upstream interests in the country, where it is active in oil and gas exploration and production through ExxonMobil Exploration and Production Malaysia Inc. Also not included in the sale are the marketing and sales of chemicals, lubricants, and asphalt products, as well as the operations of the ExxonMobil Kuala Lumpur Business Support Center. ExxonMobil’s history in Malaysia dates back to 1893.
Some might know the name as a beverage maker, but San Miguel Corp is a huge Filipino conglomerate and the parent company of Petron, the largest oil refining and marketing company in the Philippines.
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Its not wise to change the brand Mobil to any other name especially if its sounds filipino.
The brand shoud be Petron, as per San Miguel fuel station in the Philiphines.
and why if its sounds filipino??? do you have any problem on filipinoes???
San Miguel is partly owned by Malaysian, so this dealings will benefit malaysians in away. Selling Beer and Petrol products are good profitable business, globally. Also it will not be affected by high-low of inflation, up downs of Dow Jones etc. Wonder whose the lucky Malaysian chap!
by who? that moooo fler? big eyes baldy look..
Dear “Timothy Dalton”.
San Miguel is a 100% Filipino owned company and the biggest brewer in South East Asia. No Malaysians are involved in the company.
hahahaha…u dont know who partly own’s St Miguel? Its relate to our ex-PM!!
conspiracy and rumour theory that the owner is our ex-PM. The time to raise political fund for UMNo/BN to fund its Election.
San Miguel will fund the election for UMNO/ex-PM that is the reason where the offer to take ESSO is at RM3.50.
Either way when LTAT offer at best RM5.20 u will see ESSO share will jump up on monday again.
The ESSO being bash down to RM3.90 and shoot up like a rising star to above RM5.20 soon
its just a rumor theory…as you said..!!!!!!
its just a rumor theory….kindly search for more information about San Miguel Corporation so that you will know the real owners..not just believe in rumor…OK???
there goes my favorite fuel.. san miguel RON95 (20% alcohol content) perhaps?
My fav fuel too T_T . lol at the 20% alcoholic fuel… they’ll name it ‘Booze’ formula
Why can’t they keep the internationally recognized name. Sad to see these international names leave. I have stopped pumping bp ever since it was changed.
saya rugi oooo…semalam share naik sampai rm4.95. ari ni jatuh rm4..huhuhu… just because LTAT wants to buy @ rm5.20 (minimum)
Hope the Smile Rewards card keep on going. 1000pts for RM15 fuel is a good deal
What’s going on Mobil ? are you guys leaving Asean , ? First Vietnam , now Malaysia and only staying put in Singapore !
Anyway next time we can fill up and say cheers at same time and oh no the petrol is not halal anymore !!!
Exxon’s downstream line (fuels marketing) isn’t that profitable in Malaysia, that’s why they sell it and focusing on their existing upstream business (oil exploration, drilling). Esso and Mobil brand will stay in the local market for a couple of years from now (3 yrs?) until rebranding.
First BP, then Esso/Mobil, and next??
Only one simple answer required:
Esso stays or not?
Sad to hear this… no more Esso, this is my favorite petrol… (-_-)
Maybe it’s time to find try other brands… now is 950 points for RM10… sad.
this should benefit shell and petronas, their market share will increased, is esso business so bad in malaysia that they hv to pull out from market, emerging market like malaysia is good for business
Guess whos the San Miguel CEO? yaaaa Mahathir Son…. haha
Don’t spread lies. No Malaysians on the board of directors list.
http://www.sanmiguel.com.ph/corporate/bod/
http://www.sanmiguel.com.ph/wp-content/uploads/2011/06/pse-smc-directors-amendments.pdf
yayaya, he quits last year only..
http://www.abs-cbnnews.com/business/04/26/10/mahathir-quits-san-miguel-board-0
now u see those so-called haram thing still can be owned until being disclose?
A lot of people have their money invested in Haram things. Non Islamic Banks are Haram. Yet people who get anything from EPF gets bonuses from normal Banks. Profiteering is Haram yet we invest in companies with high Price Earning Ratios. We have credit cards. We don’t pay tithe. We waste.
rdbeanBun.. you read between the line please….
Mobil/esso petrols gives me the best milage. g*d damn it. dont go away pls.
The brand stays…. up to couple of years only. it will be changed to new name. Perhaps better management
No more Mobil 1 motor oil, no more fuels associated to McLaren Mercedes… so sad.
well, it’s time petronas to take a pride ^^,
Support our local brand more benefit, with primax 95Xtra come’on!
However the Mobil still using the same fuel even though management change right, so no big deal!
no problem supporting local brand only if the product is equally good.