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Japan: JX, TonenGeneral in merger talks amid push for refinery consolidation

 |  November 16, 2015

Japan’s largest oil refiner JX holdings Inc is in talks to merge with rival TonenGeneral Sekiyu, two people with knowledge of the matter said on Monday, potentially creating a company that will control more than half of a market in long-term decline.

JX, with a market value of about 1.15 trillion yen ($9.4 billion), has already held talks with TonenGeneral, which is worth about half as much, the sources said, declining to be identified as the matter remained confidential.

The companies are aiming to reach an agreement as early as next month, one of the sources said.

A deal would create Japan’s biggest refinery in terms of gasoline sales and market value since JX itself was created from the merger of several companies in 2010.

Full content: The Wall Street Journal

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