Malaysia’s PETRONAS Dagangan Berhad (PDB) announced that it is divesting its businesses in Vietnam, following an agreement signed between its wholly-owned subsidiary, PDB (Netherlands) B.V. and Totalgaz Vietnam Limited, as part of its portfolio rationalisation strategy.

The two companies, PETRONAS (Vietnam) Co. Ltd. and Thang Long LPG Company Ltd., will cease to be indirect wholly owned subsidiaries of PDB upon completion of the divestment. Both companies were acquired by PETRONAS Dagangan in 2012.

The completion of the divestment is expected by the second quarter of 2016, subject to the conditions of the share sale and purchase agreements being met.

While PETRONAS Dagangan plans to exit Vietnam, its parent company Petroliam Nasional Berhad (PETRONAS), will continue to do business in the country.