(Recasts, adds details)
TOKYO Aug 31 JX Holdings Inc, Japan’s
biggest oil refiner by sales, has agreed to pay about 352
billion yen ($3.4 billion) in stock for TonenGeneral Sekiyu KK
, the country’s third-largest refiner by sales.
The companies, which reached a basic merger agreement last
December, said Wednesday in separate statements that JX would
pay 2.55 shares for each TonenGeneral share. Based on the ratio
and JX’s closing price on Tuesday, TonenGeneral is valued at
965.175 yen per share, representing about a 6.8 percent premium
to its close the prior day.
The merger will create a firm that will control over half of
Japan’s gasoline sales. The country’s government has been
encouraging consolidation in its refining sector, where five big
refiners and three smaller ones are vying for business from a
shrinking population increasingly opting for more fuel-efficient
The statement also said that TonenGeneral will be delisted
on March 29, 2017, and the new entity, to be called JXTG
Holdings, will be formed effective April 1 next year.
In line with the government-supported consolidation drive,
rival refiners Idemitsu Kosan Co and Showa Shell Sekiyu
KK are planning to merge next April but the plan is
facing opposition from the founding Idemitsu family.
JX and TonenGeneral will hold a news conference at 0430 GMT.
JX Holdings President Yukio Uchida will head the new
company, JXTG Holdings,…