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Japan: Idemitsu Kosan postpones Showa Shell merger

By  |  October 13, 2016

Japanese oil refiner Idemitsu Kosan said Thursday it would put off a planned merger with a rival, bowing to opposition from the son of Idemitsu’s late founder.

The battle has captured attention in Japan, where founding families maintain influence in various forms at many major companies including Toyota Motor.

Idemitsu management has pushed hard for the merger with Showa Shell Sekiyu K.K. but repeatedly failed to persuade the company’s honorary chairman and former president, 89-year-old Shosuke Idemitsu. Mr. Idemitsu and family members control a 33.9% stake in Idemitsu, enough to block the merger.

On Thursday, Idemitsu’s president, Takashi Tsukioka, said the merger could no longer happen as planned in April 2017. He said he expected a delay of up to a year. Still, he said he believed the merger was “the best possible combination and the best possible measure for the two companies’ sustainable growth.”

Full Content: The Wall Street Journal

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