Nippon, Cosmo Oil tie up

Nippon, Cosmo Oil tie up

TOKYO (AFP): Japan's top oil distributor Nippon Mitsubishi Oil Corp. said Saturday it was considering a tie-up with the third largest distributor Cosmo Oil Co. Ltd.

"We are considering a tie-up with Cosmo Oil as we are facing the severe management environment and feeling the necessity to make drastic measures to cut costs," Nippon Mitsubishi Oil said in a statement.

But the company declined to give any details on the tie-up, only saying the two firms had yet to reach a final agreement on the deal.

The release of the statement followed a report by the Nihon Keizai Shimbun Saturday saying the two would collaborate in the area of oil procurement, refining and distribution.

Nippon Mitsubishi Oil and Cosmo Oil planned to integrate their major divisions, except for marketing, as early as next year, the daily said.

Nippon Mitsubishi Oil was created in April from a merger between Nippon Oil Co. Ltd. and Mitsubishi Oil Co. Ltd.