JX Holdings Inc. has agreed to merge with its one-time rival, TonenGeneral Sekiyu K.K., in an attempt to push for refinery consolidation. This move was prompted after the no. 2 player in the sector, Idemitsu Kosan Co., agreed to integrate their business with Showa Shell Sekiyu K.K.
TonenGeneral, the no. 3 within the sector, acknowledged that they were indeed in merger talks with JX. The final deal is expected to be announced by the end of the week. JX cited a “severe business environment” within the oil industry as a motivation, before acknowledging that their merger with TonenGeneral would help to strengthen the petroleum business.
