Shares of Japanese oil refiner TonenGeneral Sekiyu KK dropped Thursday following an announcement ExxonMobil Corp. is considering selling its majority shares of that company.
The Web site of the nation's No. 2 refiner confirmed reports that ExxonMobil, is considering the sale of that company, but stressed no descisons have been made.
According to a Bloomberg story Thursday, the Japanese company's stock plummeted 13 percent in two days -- the biggest drop since September 2001.
TonenGeneral, is the country's second largest oil refiner, and imports and distributes ExxonMobil oil into the island country.
The U.S. company holds a 50.02 percent stake in the Japanese refiner, and Bloomberg reported ExxonMobil's stake in the refiner is valued at $2.9 billion.
TonenGeneral is expected to spend close to $2.6 billion to buy back more than 30 percent of ExxonMobil's shares, Bloomberg reported.
ExxonMobil can confirm that it is in discussion with TonenGeneral Sekiyu about the potential restructuring of its holdings in Japan but no decisions have been made, according to TonenGeneral's Web site. ExxonMobil has no plans to exit the Japan market. Our customers will continue to enjoy ExxonMobil brands and products.
Rachael Moore, a spokesperson with ExxonMobil mirrored that sentiment in a statement to the International Business Times.
Our priorities in Japan remain the same as ever - to effectively meet the expectations of our employees, customers, dealers and other business partners while maintaining a consistent focus on safe, flawless and profitable operations, Moore said.