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ExxonMobil to sell oriented polypropylene films business

March 19/2012

(ft) -- ExxonMobil has retained a financial adviser to sell its OPP films business, a source familiar with the situation and an industry source told mergermarket.

The oil giant has mandated JPMorgan for the divestiture, the source familiar said, adding that a teaser on the unit had already been sent to prospective bidders.
A spokesperson for the Irvine, Texas-based oil company did not comment. JPMorgan did not respond to requests for comment.

The OPP (oriented polypropylene) films unit is part of the companys chemicals segment and has 118kmt (thousands of metric tons) capacity in the US. It also has 144kmt capacity in Belgium, Italy and the Netherlands, the source familiar said. The teaser did not include revenue or EBITDA.

The source familiar said Exxon inherited the films business from Mobil, categorizing the unit as non-core. The two oil giants merged in 1999 in a deal valued at USD 82bn.

In 4Q11, Exxon Mobil had chemical earnings of USD 543m, USD 524m lower than the fourth quarter of 2010. Weaker margins decreased earnings by USD 230m, while lower volumes and mix effects reduced earnings by USD 40m. Other items, mainly unfavorable tax effects, cut earnings by USD 250m, the company reported.

Author:Anna Larionova
Category:General News
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