Chandra Asri to buy Exxon's Singapore retail fuel stations

By Yantoultra Ngui and Trixie Yap

SINGAPORE, Oct 24 (Reuters) - Chandra Asri Pacific TPIA.JK said on Friday it will acquire Exxon Mobil's XOM.N network of Esso-branded retail petrol stations in Singapore as the U.S. major streamlines its downstream operations.

The deal is expected to be completed by the end of this year, subject to regulatory approvals, the Indonesian conglomerate said in a statement. The value of the deal, which includes nearly 60 stations and associated supply agreements, was not disclosed.

The Indonesian company will continue to use the Esso brand, buy fuels for the stations from Exxon, and take on Exxon staff running the business, Chandra Asri said in its statement.

The company said in reply to an email that it was unable to share commercial details of the deal.

The announcement confirms a Reuters report in April that Chandra Asri's joint venture was in talks with Exxon Mobil to buy the assets as the U.S. energy firm was exiting Singapore’s retail fuel market.

Shares of Chandra Asri Pacific were last up 2.1% on Friday, LSEG data showed. The stock is down roughly 2.7% year-to-date and has a market value near $37 billion.

Chandra Asri, in a joint venture with Glencore GLEN.L, owns Aster Chemicals and Energy, which announced a string of investments in recent months, including an upgrade at Singapore's Bukom refinery and the purchase of a petrochemical plant operated by Chevron Phillips Singapore Chemicals.

Exxon will continue running its refining and petrochemical complex on Jurong Island to provide fuels to its customers in the region and globally, a company spokesperson said.

Earlier, the U.S. major announced an expected cut of 10%-15% to its 3,500-strong Singapore workforce by 2027 as part of a global restructuring plan to streamline its operations.

Exxon previously sold its retail network in Thailand to Bangchak Petroleum for $603 million in 2023.

UK bank Barclays was the financial adviser to Exxon for the Singapore deal, Reuters earlier reported, while global law firm Baker McKenzie represented Chandra Asri.