Nipco Investment limited, a wholly-owned substitute diary of NIPCo Plc (both Nigerian companies) have acquired 60 percent majority shareholding in Mobil Nigeria down stream business subject to regulatory approvals. The deal which was announced yesterday at the Nigerian Stock Exchange (NSE) states that Mobil Oil Nigeria Plc, has been informed by its majority shareholders, Exxon Mobil Oil Corporation, that the deal is done.
Mobil Oil Nigeria will continue to run as a separate, distinct and independent company from Nipco pic. Each with its own CEO, reporting to its Board of Directors.
The Managing Director of Nipco, Venkataraman Venkatapathy in at a briefing yesterday said the acquisition was agreed with the execution of a sales and purchase agreement with ExxonMobil on Monday 17th October, 2016.
The financial worth of the deal was however not disclosed as Venkatapathy disclosed that the conditionality’s of the transaction prohibit Nipco from disclosing the value to the public.
The signing will usher in a transition period which will span six months, with the initial process of obtaining approval from the Securities and Exchange Commission already underway.
Venkatapathy said the move is part of the company’s strategic move to support Nipco continuos growth and expansion of its Nigerian footprint and will continue to maintain the Mobil brand as its retail outlets as well as blending and selling Mobil brand of lubricant under branding licensee from ExxonMobil.
He said, “We are confident of adding tremendous value to MON and likewise MON will add a huge value to Nipco.”
As part of the deal, Nipco will respect the terms of all the collective agreement with employees and the unions that represent them.
Nipco has also promised to increase presence and efficiency by expanding MON retail footprints to a minimum of 300 by December 2017.
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