A group of Japanese firms has opened talks on combining parts of their LPG business to a bid to become more competitive. Trading houses Mitsui and Marubeni, refiner Nippon Oil - now a subsidiary of JX Holdings - and Mitsui Marubeni Liquefied Gas (MLG) say they want to boost profits by improving business efficiency as domestic LPG demand falls because of a declining population and competition from other fuels. The four companies will also work to form an integrated company, Newco, to expand into new areas such as fuel cell sales using their LPG sales networks. Newco is expected to be majority-owned by Nippon Oil, with Mitsui holding about 30% and Marubeni 20%. They have targeted an end- May deadline for concluding a basic agreement and aim to complete the process by March 2011
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