20 October 2016, Sweetcrude, Lagos —An Indigenous downstream company in Nigeria, Nipco has confirmed the 60 percent acquisition of a stake in Mobil Oil Nigeria Plc from United States oil giant, ExxonMobil.
The deal is seen as a continuation divestment strategy by international oil companies (IOCs) operating in the country.
The transaction sets NIPCO to initiate the process of obtaining regulatory approval from the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE), having signed the sale and purchase agreement (SPA) with ExxonMobil.
Given the deal which is described as the biggest in Nigeria’s downstream leave French energy major, Total as the only IOC company operating in the country’s downstream.
Confirming the acquisition of Mobil Oil by his company, the Managing Director of NIPCO, Mr. Venkataraman Venkatapathy, said in a statement yesterday that the transaction was agreed with the execution of the SPA with ExxonMobil.
Venkatapathy said with the signing of the SPA, his company would start the transition period and seek the approval of the NSE and SEC.
“The transition period will also enable NIPCO Plc to effectively manage a smooth and successful completion of the transaction. NIPCO considers this acquisition an important synergy.
“It is part of our strategic move to support NIPCO’s continuous growth and expansion of its Nigerian retail footprint. We are confident of adding tremendous value to MON and likewise MON will add huge value to NIPCO.
“In furtherance of this value addition, NIPCO will continue to maintain the Mobil brand on its retail outlets as well as continue to blend and sell the Mobil brand of lubricants under branding licence(s) from ExxonMobil,” Ventakapathy explained.
The NIPCO boss, who did not disclose the value of the deal, however, expressed his company’s profound gratitude and appreciation to ExxonMobil for selecting NIPCO as the preferred bidder for the acquisition of MON.
“We wish to give every assurance to ExxonMobil that having entrusted us with this invaluable asset (MON), we will ensure full brand compliance with ExxonMobil’s global standards as well as rigorously sustain and follow ExxonMobil’s code of conduct/ethos and operational excellence,” Ventakatapathy added.
According to him, NIPCO’s expansion reinforces its implicit confidence in Nigeria’s future.
He noted that the Nigerian economy still provides a robust and premium return on investment, adding that his company was privileged to have been given this opportunity by ExxonMobil on its home ground.
“To our shareholders and stakeholders, we say welcome to a new dawn. A new era that will usher in stability, prosperity, sustainability and growth,” Ventakatapathy said.