ExxonMobil mulls sale of European chemical plants - report

(Sharecast News) -

ExxonMobil is reportedly seeking to offload European chemical plants as the sector reels from US tariffs and increased competition from China.

The US energy producer held talks with advisers in recent weeks on possible sales, which could fetch up to $1bn, the Financial Times reported on Thursday, citing unnamed sources.

Other chemicals companies are also trying to engineer exits from their European operations, as the continent has borne the brunt of the downturn. Earlier this year, LyondellBasell sold four European plants, while Saudi Arabia's Sabic is considering a similar change.

ExxonMobil owns an ethylene plant in the Scottish town of Fife, as well as several production sites in Belgium. It had also discussed simply shutting them down, the sources said, adding there was no guarantee a deal would materialise, and the firm could opt to hold on to the assets. The company told the newspaper did not "comment on rumours or speculation".

The European chemicals industry is facing renewed pressure as US tariffs disrupt global trade, delay orders, and intensify competition from low-cost Chinese rivals, threatening recovery in a sector still reeling from the 2022 energy crisis.

Exxon in May said it was in exclusive talks to sell its controlling stake in French fuel subsidiary Esso SAF, as well as its wholly owned chemical business in the country to North Atlantic France SAS, a division of the Canadian fuel retailer North Atlantic.

Reporting by Frank Prenesti for Sharecast.com