Presently Japan's largest oil refiner, JX Holdings Inc. and TonenGeneral Sekiyu KK, Japan's third-largest oil refiner, finalized an agreement, effective April 1, 2017, forming a giant with combined sales of 14 trillion yen (US$135 billion).
The merger between JX and TonenGeneral would create a refiner with control of about half of the countrys gasoline market.
JX Holdings owns seven refineries and TonenGeneral owns four refineries. JX Holdings operates gas stations under the Eneos brand, while TonenGeneral operates Esso and other gas stations.
JX Nippon has three lube base oil plants, in Mizushima (two) and in Negishi with a capacity to produce a total of 11,900 bpd of Group I and 400 bpd of Group III base oils.
TonenGeneral has a base oil plant in Wakayama with a capacity to produce 7,100 bpd of Group I base oil.
The combined company, JXTG Holdings Inc., expects to achieve more than 100 billion yen a year in synergies within three years through the merger, the statement showed. JX and TonenGeneral plan to integrate operations of a refinery and chemical plants in the Kawasaki area near Tokyo and expect 10 billion yen in savings, according to the statement.
JX Holdings President Yukio Uchida will be the president of the new company, while TonenGeneral President Jun Mutoh will be the vice president, according to the statement. JX Holdings Chairman Yasushi Kimura will be the chairman.
Domestic rivals Idemitsu Kosan and Showa Shell Sekiyu KK are also seeking to tie up. Idemitsu Kosan announced on November 12, 2015 it signed a non-binding agreement to merge with Showa Shell Sekiyu K.K., creating the second-largest Japanese crude oil refiner, after JX Holdings.
