Idemitsu and Showa Shell in Merger Talks in Japan

Hiruki Nakamura
22 Dec, 2014
New York City

Stocks in Tokyo advanced after energy-complex companies led the gainers. The third-largest refiner, Idemitsu Kosan is looking to buy Showa Shell Sekiyu KK. Skymark Airlines plunged after Airbus Group NV began legal proceedings.

[R]4:30 PM Tokyo – Stocks in Tokyo advanced after energy-complex companies led the gainers. The third-largest refiner, Idemitsu Kosan is looking to buy Showa Shell Sekiyu KK. Skymark Airlines plunged after Airbus Group NV began legal proceedings.[/R]

Stocks in Tokyo advanced and extended this month’s high after energy companies led the gainers on the rebound in oil prices.

Bank of Japan continued its expansion of monetary base at an annual rate of 80 trillion yen or $675 billion, according to the December month economic report released by the central bank today.

The Nikkei 225 Stock Average rose 13.74 to 17,635.14 and the broader Topix index added 3.44 to 1,413.05.

The yen increased 0.2% to 119.82 against one dollar.

Stocks in Review

Dentsu Inc rose 0.2% to 5,070 yen after the advertising and marketing service agreed to acquire Canada-based Spoke Agency Limited, the digital content producer for retail and entertainment sector for an undisclosed sum.

Idemitsu Kosan Co., Ltd jumped 2.5% to 2,075 yen on the media report the oil and petroleum products supplier is in talk to acquire Showa Shell Sekiyu KK for up to 500 billion yen or $4.2 billion.

If the deal is complete, the company will be the second largest supplier in the domestic gasoline market.

Minebea Co Ltd closed unchanged at 1,733 yen after the ball bearings maker agreed to acquire Intec unit from the Germany-based Sartorius Mechatronics T&H GmbH.

After the acquisition, the company expects component business revenues to increase to about 27 billion yen per year.

Next Co., Ltd gained 2.6% to 904 yen after the online real estate information service provider forecasted net sales in November climbed 17.1% to 1.38 billion yen from the same month a year ago.

But, custom built house and renovation segment revenues declined 32% to 52.6 million yen compared to a year ago month.

Skymark Airlines Inc tumbled 16.5% to 319 yen after the European aircraft maker Airbus Group NV filed a lawsuit in the U.K. against Japanese budget airline.

In July, the company terminated the contract for six A380 super-jumbo passenger jets valued $2 billion.

Skymark already forecasted net loss for the financial year ending March of about 13.7 billion yen.