ExxonMobil considers sale of European chemical plants, FT reports

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(Reuters) -ExxonMobil is seeking to offload its European chemical plants in the UK and Belgium as the sector reels from the impact of U.S. tariffs and competition from China, the Financial Times reported on Thursday, citing people familiar with the matter.

The U.S. energy producer has held early-stage discussions with advisers in recent weeks on possible sales, which could fetch up to $1 billion, the newspaper said, citing two sources.

Exxon told the newspaper that it does not “comment on rumours or speculation”.

Reuters could not immediately verify the report. Exxon did not immediately respond to a Reuters’ request for comment outside regular business hours.

The European chemicals industry is facing renewed pressure as U.S. tariffs disrupt global trade, delay orders, and intensify competition from cheaper Asian imports, threatening recovery in a sector still reeling from the 2022 energy crisis.

Exxon 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 report said.

There was no guarantee a deal would materialize and Exxon could opt to hold on to the assets, the report said.

Other major players like LyondellBasell and Sabic are also reducing their European footprints, with LyondellBasell selling certain olefin and polyolefin assets earlier this year.

In May, Exxon entered into exclusive negotiations with the French unit of Canadian energy group North Atlantic to divest its majority-owned French subsidiary Esso.

(Reporting by Rajveer Singh Pardesi in Bengaluru; Editing by Sonia Cheema and Sherry Jacob-Phillips and Subhranshu Sahu)