Energy major ExxonMobil has entered into exclusive negotiations with the French unit of Canadian energy group North Atlantic to divest its majority-owned French subsidiary Esso, it said on Wednesday.
The sale is expected to take place in the last quarter of this year, at a price of 149.19 euros ($168.82) per Esso share before distributions, or 32.83 euros after distributions, Esso said in a statement.
Those include an additional distribution of up to 63.36 euros per share, ExxonMobil aims for Esso to make prior to completion of the transaction, Esso said.
ExxonMobil is currently the majority shareholder in Esso, with a 82.89% stake, which it plans to divest entirely.
Shares in Esso are down 9.2% around 0931 GMT, on track for a worst day since July 24, 2024.
Following the acquisition, North Atlantic would make a mandatory takeover bid for the remaining shares of Esso on the same financial terms as the initial offer, Esso said.
It said that the tender offer is expected to be filed in the first quarter of 2026.
North Atlantic intends to maintain employment and to develop Esso's Gravenchon facility into a green energy hub, the group said in a statement.
There will be a continuity in operations, as ExxonMobil will continue to supply the crude oil that will be processed by North Atlantic at the Gravenchon refinery using Exxon technology, a North Atlantic spokesperson said.
Located in the Normandy region, the Port-Jerome-Gravenchon facility is the second-largest refinery in France and one of the largest integrated chemical complexes in Western Europe.
Last October, Esso completed the sale of its Fos-sur-Mer refinery and two other oil terminals to Trafigura consortium firm Rhone Energies.
Esso, which saw its profitability dented by lower refining margins, is also winding down activity at the Port Jerome refinery in anticipation of a planned shutdown.-Reuters