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Exxon explores sale of elastic polymer enterprise: sources By Reuters 

© Reuters. FILE PHOTO: Emblem of the Exxon Mobil Corp is seen on the Rio Oil and Fuel Expo and Convention in Rio de Janeiro

By Joshua Franklin and Greg Roumeliotis

(Reuters) – Exxon Mobil Corp (NYSE:) is exploring a sale of its Superior Elastomer Methods (AES (NYSE:)) division, probably valuing the elastic polymer maker at round $800 million together with debt, based on individuals conversant in the matter.

The deal would permit the oil main to nibble at its debt pile, which totaled $45.5 billion on the finish of December. Its shares are up round 37% year-to-date on investor expectations that the corporate will profit from a restoration in power costs.

Exxon has employed funding financial institution Morgan Stanley (NYSE:) to solicit curiosity in AES from potential consumers, together with non-public fairness companies, the sources mentioned.

The sources cautioned that no deal is for certain and requested anonymity as a result of the matter is confidential. Exxon and Morgan Stanley declined to remark.

Exxon incurred a historic lack of $22.4 billion final 12 months. It’s attempting to persuade a skeptical Wall Avenue that it could possibly rebound after years of overspending left it deeply indebted and lagging rivals higher geared for a world demanding cleaner fuels.

AES is understood for its Santoprene thermoplastic vulcanizates (TPVs), that are elastic polymers utilized in automotive, industrial and shopper merchandise. The enterprise was launched in 1991 as a restricted partnership between ExxonMobil Chemical and Solutia. Exxon grew to become the only real proprietor of AES in 2002.

The worldwide TPV market is seen rising from $1.6 billion in 2019 and to $2.6 billion in 2027, although the business has been adversely affected by the COVID-19 pandemic on account of manufacturing facility shutdowns and provide chain points, based on a report by

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