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Japanese refiner Idemitsu Kosan and Showa Shell merger is still to be discussed
 One of the main questions is whether the deal will damage relationship with Saudi Arabia and Iran. 13.Jul.16 4:28 AM By Vladimir Vasiliev Photo Toinnov.com |
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Idemitsu Kosan’s founding family opposed the planned merging as it is said due to different corporate culture. Nevertheless the family has agreed to continue discussions. The family’s opinion on the matter is crucial as it owns 33.92% of shares. According to current information the positions of the management and family are so far apart that no deal could be expected soon. There is no even date when discussion is to be continued. Seems like more important reason of not making deal smoothly related to sensitive relations with Saudi Arabia and Iran. Idemitsu Kosan has relationship with Iran since 1953 but its main last year supplier was Saudi Arabia which shipped at about 40% of crude oil. Saudi Arabia Aramco has 14.96% stake in Showa Shell. As it is known by now the founding family has doubts that merge deal might be seen as an affiliate to Saudi Arabia. It is clear that right now Idenitsu Kosan has a desire to maintain relationship with National Iranian Oil Company. Considering these factors it could not be expected that planned merger is going to be completed soon, but the aim is attractive. Once approved, two firms would be able to control about 30% of Japan’s fuel market. | |
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