December 27, 2016
Volume 7 Issue 4
TonenGeneral to Carve Out New Lubes Subsidiary
Japan's TonenGeneral Sekiyu K.K. will absorb its lubricants arm, EMG Marketing Godo Kaisha, next week and launch a subsidiary to market ExxonMobil's Mobil-branded oils in April, when it merges with JX Holdings.
The move comes 10 months after ExxonMobil divested from TonenGeneral and just over four months before TonenGeneral is set to be acquired by JX Holdings. On Jan. 1, TonenGeneral will merge with its lubricants division, EMG, which has a paid-in capital of ¥350 million (U.S $3 million). The new subsidiary to be carved out by April will manufacture, market and export lubricants, including Mobil-branded products.
TonenGeneral also said it is preparing to complete its previously announced business integration with JX Holdings on April 1 and to close its own listing on the Tokyo Stock Exchange on March 29.
“After the business integration, the lubricants brands used by the two companies will continue to be used for some time, and the two companies plan to discuss future business development,” said the statement.
However, TonenGeneral “determined that the establishment of an independent company is appropriate from a standpoint of managing brands and other considerations and is in discussion with ExxonMobil regarding [a] lubricants business model in Japan post April 1, 2017,” said the statement.
“There will be no change in the relationship between the TonenGeneral Group and its lubricants business partners,” added the company.
In February, ExxonMobil sold its remaining stake of 6 percent in TonenGeneral, ending a multi-year joint venture partnership. In Japan, ExxonMobil’s lubricant and fuels products are sold through a marketing agreement with TonenGeneral.
Shareholders approved the merger between JX Holdings and TonenGeneral on Dec. 21. JX Holdings markets its own brand of Eneos lubricants.