Shell’s Japan Deal Signals Further Refiner Consolidation
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Idemitsu Kosan Co.’s agreement to purchase most of Royal Dutch Shell Plc’s stake in Showa Shell Sekiyu KK and pursue a full merger may signal broader consolidation as Japan’s refiners confront declining demand.
Idemitsu Kosan on Thursday said it will pay about 169 billion yen ($1.36 billion) for a 33.24 percent stake in Showa Shell. A full combination of the two would create a company with about a third of the domestic gasoline market, putting it on par with JX Holdings Inc., the country’s largest refiner.