Japan's Idemitsu, Showa Shell have not decided on capital tie-up

Tokyo

JAPANESE oil refiners Idemitsu Kosan and Showa Shell Sekiyu said they have not decided on a capital and business tie-up as reported by some media organisations, and that they are still working towards an eventual merger.

The Nikkei business daily reported earlier on Wednesday that the two companies have begun negotiating the tie-up that would exploit synergies, but not require shareholder approval. They aim to have it operational ahead of a planned merger that has been delayed due to fierce opposition from Idemitsu's founding family, it said. "No formal decision has been made at this stage," the two refiners said in a joint statement, referring to the reported tie-up talks.