TOKYO (Reuters) - Japanese oil refiners Idemitsu Kosan (5019.T) and Showa Shell Sekiyu (5002.T) have effectively given up on a stop-gap plan to form capital ties that was being considered as a way to get around opposition from the Idemitsu family to a full merger, the Mainichi newspaper reported.
Domestic media have previously reported that the two firms were looking at taking stakes of around 20 percent in each other after the Idemitsu’s founding family threatened to block a takeover of Showa Shell.
The Mainichi said the firms were set to abandon the plans due to concerns within Idemitsu that they were not legally feasible and also due to fear of antagonising the Idemitsu founding family further.
Representatives for Idemitsu and Showa Shell declined to comment on the Mainichi report but said there was no change in plans for the companies to pursue a merger.
Reporting by Osamu Tsukimori; Editing by Edwina Gibbs