(Bloomberg) -- Exxon Mobil Corp. is in advanced talks with other shareholders to pave the way for its sale of a stake in Germany’s second-biggest refinery, which was halted after a court ruling earlier this year, according to people familiar with the matter.
Almost one year ago, the US oil giant announced its plans to sell a 25% stake in the MiRO Mineraloelraffinerie Oberrhein GmbH in the country’s southern city of Karlsruhe to commodity trader Alcmene, an Austrian affiliate of trader and terminal operator Liwathon Ltd, but the deal has yet to conclude.
Shell Plc — another shareholder in the refinery — received a legal ruling from Karlsruhe’s Higher Regional Court in July, stating Exxon Mobil should have first sought approval from all the refinery’s shareholders.
Exxon Mobil is now in the process of drawing up a compensation package with Shell, said the people, who asked not to be named as the discussions are private. They added that the parties are confident they will reach an agreement shortly, which would allow the share sale to be closed.
Pressured by environmental targets and with renewed focus on higher margin crude production, the world’s biggest oil companies are withdrawing from much of their downstream portfolios, with trading companies and private equity groups some of the main buyers.
Exxon is negotiating a sale of a French refinery to a consortium including Trafigura Group, while Shell is in the process of selling its Singapore refining and chemicals assets to a joint venture including Glencore Plc.
Exxon Mobil, Shell Deutschland and Miro declined to comment. Liwathon did not respond to requests for comment. Germany’s economy ministry also didn’t comment, but said the government will go after its usual obligation to ensure the compliance of antitrust law, security of supply and foreign trade law.
The Miro refinery — whose shareholders include Shell, Exxon Mobil, Phillips 66 and a local unit of Rosneft PJSC that’s currently under the control of the German government — processes around 15 million tons of crude oil annually, according to the company website.
--With assistance from Rachel Graham and Kevin Crowley.
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