Japanese energy giant, Idemitsu said it has reached an agreement with its major shareholders on its plan to merge with Showa Shell Sekiyu K.K.
Indemitsu said in a statement that it reached the deal with the shareholders who are Nissho Kosan K.K. and Mr.
The company said in a statement that:
“Although we have advanced discussions with Showa Shell aimed at the business integration since we executed the share purchase agreement on July 30, 2015 with subsidiary companies of Royal Dutch Shell plc to acquire Showa Shell shares, the business integration has not been realized because the discussions with Our Major Shareholders were not settled.
However, during this time, our competitors have been taking steady steps towards industrial reorganization while the business environment surrounding the domestic oil industry is becoming more challenging; thus, it is urgent that we implement the business integration of both companies soon. On the other hand, we recognize that it is also crucial to establish a stable and positive relationship with our major shareholders, who are symbols of the Company, which bears the name “Idemitsu”. We resumed discussions with Our Major Shareholders at the beginning of spring this year, to establish a relationship.
During the course of the discussions, concerns of Our Major Shareholders that the corporate philosophy supporting the Company’s fundamentals would not be succeeded to because of the business integration were gradually eliminated. We and Our Major Shareholders now believe that joining forces to make the Company better will enhance the Company’s enterprise value, and consequently, have executed the Agreement.”