Japans biggest lubricant company is grabbing a bigger share of the pie.
Nippon Oil Corp. announced Friday that is has signed an agreement to take over Fuji Kosan Co.s lubricant business. Nippon Oil is already the biggest lube supplier in Japan, producing 660,000 kiloliters (584,000 metric tons) annually to claim 26 percent of the market. Fuji Kosan produces 160,000 kiloliters and accounts for 6 percent of the market.
A spokesman for Nippon Oil said the oil company, which is based in Tokyo, paid Yen 2.5 billion (U.S. $23.6 million) for the marketing operations of Fuji Kosans lubricant business. Fuji Kosan, which is also based in Tokyo, will continue to manufacture the products, which have accounted for approximately 25 percent of its overall revenue.
The two companies have an existing relationship; Nippon Oil already owns an 11.5 percent stake in Fuji Kosan. The companies produce similar types of products serving both the automotive and industrial sectors, according toNippon Oil spokesman Furuya Daisuke.
The transaction is scheduled to become effective March 31. Furuya said the deal does not require approval of Japans anti-monopoly regulatory authority.