Idemitsu Kosan Pursues Shell's Stake In Showa Shell Sekiyu Joint Venture

摘要

Tokyo—Idemitsu Kosan has signed a share purchase agreement to acquire Royal Dutch Shell's 33.24% interest in Showa Shell Sekiyu for ￥169-billion. Idemitsu Kosan said it has been discussing a merger with Showa Shell in light of the "various structural challenges" facing the industry in Japan. The company cited the medium-and long-term drop in demand for petroleum products and a low earnings structure caused by over capacity and excessive competition. "Through this transaction, we would like to advance these merger discussions with Showa Shell even further."