A leading indigenous downstream sector has acquired 60 per cent stake in Mobil Nigeria Plc, becoming the majority shareholder of its rival.
The 60 per cent stake originally belonged to ExxonMobil. According to the Nigerian Stock Exchange (NSE), Mobil Nigeria Plc has informed the Exchange of the divestment by its parent body which is now being acquired by NIPCo Plc.
However, in a chat with the Nigerian Tribune on Wednesday, the Managing Director, NIPCo Plc, Mr. Venkataraman Venkatapathy, stated that the acquisition was agreed with the execution of a Sales and Purchase Agreement with ExxonMobil on Monday.
“With the signing, we will start the transition period which will span about six month. We have also initiated the process of obtaining regulatory approval from Securities and Exchange Commission and the NSE.
“While assuring stakeholders that Mobil Oil Nigeria will continue to run as an independent company, NIPCo shall respect the terms of all collective agreements with employees and unions that represent them,” he said.
He said the goal of the company is to increase presence and efficiency by expand in MON’s retail footprints to a minimum of 300 by December 2017.
He however declined to reveal the cost of the deal, according to him, due to confidentiality clause as contained in the contractual agreement with EXXONMOBIL.