NIPCO Investments Limited, a subsidiary of NIPCO Plc, took over the 60% majority equity stake of ExxonMobil Oil Corporation in Mobil Oil Nigeria Plc late March. The negotiation is considered to be one of the biggest deals in the downstream sector in the recent years, The Nation reported.
According to 4-traders, the $294.3 acquisition was finalized after the approval of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE). Cordros Securities Limited acted as the execution stockbroker for the deal.
In October 2016, ExxonMobil and NIPCO signed a sale and purchase agreement (SPA) to sell the former’s majority equity stake of 60 % in Mobil Oil Nigeria (MON) to NIPCO, previously called IPMAN Petroleum Marketing Company Limited.
NIPCO’s acquisition is considered to be a significant breakthrough that could boost future investments in the sector, following the deregulation initiative of the Federal Government of Nigeria in the downstream oil and gas industry.