Idemitsu raises stake in Fuji Oil, eyes holding 20%

Fuji Oil Co (Shinagawa)

19/03/2024 09:52

TOKYO, March 19 (Reuters) - Idemitsu Kosan  5019.T ,
Japan's second-biggest oil refinery,   said on Tuesday it will
raise its stake in Fuji Oil  5017.T  to 13.04% from 6.58% by
buying stake from Sumitomo Chemical  4005.T  and may raise its
ownership to 20%.
    The move is aimed at raising its competitiveness in the fuel
sector through expansion of joint purchases of crude oil, as
well as deepening collaboration in decarbonisation measures,
Idemitsu said.
    Under the agreement, Idemitsu will buy 5.05 million shares
in Fuji Oil at 330 yen ($2.20) per share in an off-market
transaction, an Idemitsu spokesperson said, adding it will
consider making Fuji Oil an equity affiliate by making
additional shares.
    "We will consider raising our stake to 20% to make Fuji Oil
an equity-method affiliate, but we are not considering
purchasing any additional stake after that," the spokesperson
said.
    The purchase price is lower than Fuji Oil's closing price on
Tuesday of 384 yen.
    The transaction between Idemitsu and Sumitomo Chemical,
which will make Idemitsu the top shareholder of Fuji Oil, is
scheduled to take place on March 26, according to Fuji Oil.
    "We see the deal (between Idemitsu and Sumitomo Chemical) as
positive as the stronger capital alliance with Idemitsu will
help enhance our business collaborations," a Fuji Oil
spokesperson said.
    He declined to comment on a possible additional purchase of
its shares by Idemitsu.
    ($1 = 150.4200 yen)

 (Reporting by Yuka Obayashi; editing by Jason Neely)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))