Idemitsu to delay Showa Shell stake purchase from Shell: Nikkei
EghtesadOnline: Japanese refiner Idemitsu Kosan will again delay its planned purchase of Showa Shell Sekiyu shares from Royal Dutch Shell because a review by the Japan Fair Trade Commission remains ongoing, the Nikkei newspaper said.
If true, the delay is another setback for Idemitsu in its long-drawn out attempt to take over Showa Shell, after meeting strong opposition from the founding family of Idemitsu.
Idemitsu management last month put a full takeover on hold indefinitely although it had planned to press ahead with a signed agreement to acquire a 33 percent of Showa Shell for about 170 billion yen ($1.7 billion) from Royal Dutch Shell, according to Reuters.
Idemitsu will postpone the purchase until the end of January, the Nikkei said without citing sources, from the current target of the end of November.
Idemitsu said it would make an announcement about the timing of its purchase of Showa Shell shares at 0600 GMT on Monday, but did not elaborate further.
The setbacks raise fresh questions over whether the two firms will ever be able to combine businesses given that the founding family, which owns just over a third of Idemitsu, could either block a full deal outright or even if it was not blocked, could veto board decisions.