Exxon Mobil gets $3.9 bln for Japan refining unit, ABB pays $3.9 bln for Thomas & Betts | Deal Insight

Exxon Mobil exits Japan

Monday was busy again after FDA approvals , EU summits and Portugal’s 70% probability of default kept trippin gthe wires. 25% + pay cuts at Morgan /stanley and 1% gross fees for Morgan Stanley and Goldman Sachs n the Facebook IPO were a heavy drop on the markets too as the markets ended where they closed on Friday.

ExxonMobil is dealing back its stake in Japanese refiner to JV partner TonenGeneral reducing its stake in TonenGeneral to 22% as Japan energy demand keeps falling in oil terms. Its remaining 22% stae will be worth another $3 bln approx

TonenGeneral will pay about 12 times net income for ExxonMobil Y.K., the Tokyo-headquartered operator of 564 company-owned service stations and about 2,350 franchise stations as well as nine fuel terminals, a 50% stake in a refinery and a lube blending plant.

Exxon Mobil is offloading the retail and storage operations amid a long-term decline in Japanese fuel sales and following a government directive issued in 2010 that requires refiners to upgrade their facilities. The disposal, announced Sunday, Jan. 29, is Exxon Mobil’s biggest sale since 1999 when it sold some businesses as part of the merger between Exxon Corp. and Mobil Corp.

Analysts at Tudor Pickering Holt & Co. Securities Inc. said Monday that the deal values Exxon Mobil’s net exposure at a slight 5% premium to its net asset value, calling it a “rational strategy” for “non-core assets in a declining demand center.”

Read more: Exxon offloads Japan assets in $3.9B deal – The Deal Pipeline(SAMPLE CONTENT: NEED AN ID?)http://www.thedeal.com/content/restructuring/exxon-offloads-japan-assets-in-39b-deal.php#ixzz1kywb4nYb

ABB gets a US trade visa

ABB purchased the low voltage business of Thomas & Betts enabling the Electricity major to compete in the US market. ABB has spent another $4.1 bln before this under CEO HOgan to buy purchase into US geographies. ABB cliams the delalw ill get them a toehold in the $24 bln US Market for cable connectors, steel masts and heating and ventilation products for the Construction, Communications and Power Engineering Industries

US utilities are expected to modernise and thus provide a market for ABB in the US based on their existing Thomas  & Betts relationships

Siemens, Schneider and Eaton could be looking at consolidating in the same industrty with targets like one, Hubbell and two, Cooper picking interest according to Macquarie Securities

In PE terms the deal valuations are less than 10 yet at a $12 premium to th TNB share prices on Friday below $60

 

Related articles

• One Less Morgan Stanley Headache: Zynga Back Above IPO Price (blogs.wsj.com)
• Facebook to file for IPO as early as this week (buzzom.com)
• Facebook IPO: Morgan Stanley Clo
• se to Reeling In a Giant ‘Like’ (blogs.wsj.com)
• UBS, Facebook IPO, Exxon Mobil: Hot Trends (thestreet.com)