Idemitsu Kosan Co. announced last week that its merger with Showa Shell Sekiyu K.K., originally planned for April 2017, has been delayed to an indefinite date.

The Asian Wall Street Journal reported that Idemitsu Kosan’s management has not been able to persuade the company’s honorary chairman and former president, 89-year-old Shosuke Idemitsu, whose family has a controlling stake in Idemitsu Kosan, to agree to the merger so far.

In a press release dated October 13, 2016, Idemitsu Kosan said "We believe that the commencement of the Merger should be supported by stakeholders of both companies as much as possible. However, it is our strong regret that the basis for constructive discussions for the Merger is not currently in place due to difficulties in consultations with some stakeholders. Under such circumstances, to secure enough time for both companies to discuss with their respective stakeholders, we have decided that it is not appropriate to set the effective date of the Merger as April 1, 2017 pursuant to an extraordinary shareholders meeting or to specify an alternative effective date of the Merger at this moment. Therefore, we hereby announce as follows: We will continue discussions in connection with business integrations that would enhance the competitiveness of both companies, and we will make a further prompt announcement when appropriate".

Idemitsu closed by stating "Date of Launch of a new company (Effective Date of the Merger) is now: Undecided / will make a prompt announcement when it becomes clear".