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.