TOKYO (Reuters) - Japanese oil refiners Idemitsu Kosan Co Ltd and Showa Shell Sekiyu KK said on Tuesday that they have signed a deal to form a business alliance ahead of Idemitsu’s takeover of Showa Shell.
Under the deal, the companies will cooperate more closely on crude purchases and transportation as well as production plans, they said in a statement.
The closer cooperation will result in cost savings of at least 25 billion yen ($220.59 million) within three years.
The companies said they will still achieve costs savings of 50 billion within five year of the full integration of the two business. The full merger has been delayed indefinitely due to opposition from Idemitsu’s founding family.
($1 = 113.3300 yen)
Reporting by Osamu Tsukimori; Editing by Christian Schmollinger