Japan: Biggest oil refiners consider merger

Japan’s JX Holdings is in talks to take over rival TonenGeneral Sekiyu, sources familiar with the matter said – a combination that would control more than half of all gasoline sales in the country.

The talks follow Idemitsu Kosan’s agreement last month to take over Showa Shell Sekiyu for $4 billion, as much of Japan’s refining sector bows to calls from the government to slim down after years of declining earnings.

JX, with a market value of about 1.26 trillion yen, and TonenGeneral, which is worth a little over half as much, are aiming to reach an agreement as early as this week, said the sources, requesting anonymity because they are not authorised to speak to the media.

JX and TonenGeneral issued statements saying they are in talks to merge but have not yet made a formal decision.

The combined company would have annual sales of more than 14 trillion yen, which would be Japan’s second-biggest company by revenue after Toyota Motor.

Full content: Bloomberg

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