December 13, 2016
Volume 3 Issue 50
Informal Idemitsu, Showa Deal Rumored
Nikkei Asian Review reported Wednesday that Idemitsu Kosan Co. and Showa Shell Sekiyu K.K. can and likely will begin to cooperate even if Idemitsus board continues to block an official merger. The Japanese newspaper said the two oil refiners began negotiating an informal tie-up, which would be tough for Idemitsus opposing shareholder(s) to block since Idemitsus planned purchase of Showa Shell shares would not give it enough voting rights to veto Showas dominion on such matters. The firms responded in a joint statement saying they have not made a formal decision on the integration nor unveiled that such a meeting took place.
Singaporean firm United Oil incorporated a joint venture in Taiwan with its local distributor, Jin Wei Chuang Co., to continue exports and sales of its products there. According to a report fromFuture Market Insights, demand for refrigeration compressor lubricants, a niche segment worth U.S. $1 million in sales, is expected to increase at a compound annual growth rate of 5.3 percent through 2026. The Asia-Pacific region, excluding Japan, will account for 31 percent of the market this year and will continue to lead in sales throughout the forecast period. Petronas Lubricants International began exporting its range of products from Malaysia to the South African market through Engen Petroleums distribution network. Ergon International, known for its naphthenics and bright stock production, added a storage terminal in Ulsan, South Korea, and a regional office in Singapore.