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We will seek to hold discussions with the founding family to get their understanding of the merger. By refusing to hold talks, the founding family is damaging not only shared interests of all stakehol

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Idemitsu Kosan Executive Vice President Daisuke Seki, referring to opposition by Shosuke Idemitsu, 89, the the scion of the company’s founding family that controls 33.9% of the refiner, to a government-backed $1.7 billion merger with rival Showa Shell Sekiyu K.K. (Bloomberg)

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Merger for the sake of merger to become larger is not the answer especially when Shell is demanding a merger of equal basis. Idemitsu does not need to entertain Shell on equal basis when Shell is the one that is basically sinking within the market.

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Have you not noticed that there has been a consolidation in the Japanese oil sector in recent years/decades, fully supported by the government, to address the chronic lack of profitability in the industry as a whole? This is just one part of the picture. Of course the Idematsu family as major shareholders have every right to oppose the merger for whatever reason, and I would say they have no obligation to discuss things either. The rules require the agreement of all relevant parties and the deal will not go ahead without it. But calling it a 'merger of equals' does not in any way imply unfair valuation or treatment of the two parties.

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