SMC to acquire ExxonMobil’s downstream businesses in Malaysia

Philippine-based San Miguel Corp. (SMC) will acquire Esso Malaysia Bhd, ExxonMobil Malaysia Sdn Bhd and ExxonMobil Borneo Sdn Bhd for a reported US$610 million. The three partially or wholly owned subsidiaries of ExxonMobil refine, distribute and market petroleum products in Malaysia, with assets that include the Port Dickson refinery, seven fuel distribution terminals and approximately 560 branded service stations. San Miguel Corp., the Philippines’ largest beverage, food and packaging company, is expanding into the infrastructure, telecommunications and energy sectors, including majority ownership in the country’s largest refiner, Petron Corp. “ExxonMobil’s Malaysian downstream business is attractive to San Miguel Corp. given that there is plenty of room to move up the value chain by upgrading refinery capabilities,” said Ramon S. Ang, SMC president and CEO. Ang said SMC plans to upgrade the 88,000-barrel-per-day Port Dickson refinery so that it can “make use of a wider variety of crudes and produce higher-value products.” ExxonMobil is reviewing its assets in Asia, while focusing on its upstream, chemicals and lubricants businesses in Malaysia. (August 18, 2011)