JX Holdings, the largest oil refining company in Japan, and its rival TonenGeneral Sekiyu have signed a final agreement to merge their energy businesses through a share exchange. JX Holdings will swap 2.55 shares for each TonenGeneral share, in a US$4.3bn deal.
The merger was announced in December 2015 and is subject to the filings made with the Japan Fair Trade Commission and other Japanese or foreign authorities, obtainment of permissions and approvals, preparation of the registration statement to be filed with the U.S. Securities and Exchange Commission (SEC) and the progress of other preparations for the business integration. The merger is expected to be completed on 1 April 2017.
The new company would operate three large refineries in the Tokyo Bay, control half of the Japanese gasoline market and operate more than 14,000 retail gasoline outlets in the country. The companies had a combined revenue of Yen 14,300 bn (US$116bn) in the 2014-2015 fiscal year.
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