KUALA LUMPUR (May 14): Japan’s largest oil company Eneos is acquiring Chevron’s downstream businesses in Malaysia and in other Southeast Asian countries as well as in Australia for US$2.17 billion (RM8.53 billion).

Chevron, which owns the Caltex brand and operates more than 450 fuel stations in Malaysia, is also selling its fuels and lubricants marketing businesses in Singapore, the Philippines, Vietnam, and Indonesia, according to a statement from Eneos on Thursday.

“This investment represents a significant step in strengthening the business platform that connects Japan with Southeast Asia and Oceania,” said Miyata Tomohide, the representative director and CEO of Eneos Holdings Inc.

The transaction comes at a time of declining petroleum demand in Japan and growing middle class in Southeast Asia’s rapidly-developing economies.

Eneos said it aims to capture demand growth in the region and strengthen trading opportunities in Australia, a key export market for Japan, by acquiring “cost-competitive, export-oriented refinery and downstream fuels and lubricants businesses in these markets.”

“By integrating the overseas assets to be acquired with our existing business platform in Japan, we will optimise our supply chain and contribute to a stable energy supply in the Asia-Pacific region over the medium to long term,” the company said.

Eneos and Chevron expect the transaction to close in 2027, subject to customary regulatory approvals and closing conditions, the statement read.