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The main Japanese oil wholesalers, Idemitsu Kosan and Showa Shell Sekiyu, merged on Monday, which helped reorganize the country's industry into three major groups.
With sales of 5.8 billion yen, or about $ 52 billion, the company becomes the second largest oil wholesaler in Japan after JXTG Holdings. Cosmo Energy Holdings is No. 3.
Although Idemitsu has become the parent company of Showa Shell, the new company will keep the Idemitsu and Shell brands at its service stations for the time being.
The new company faces the challenge of developing new businesses as the demand for gasoline decreases. This decline is attributed to a decrease in young people's interest in owning a car and switching to electric vehicles.
The company announced that it was planning to develop overseas oil refineries, invest in renewable energy sources such as solar, wind and geothermal energy and to develop new chemicals.
Some observers have stated that amalgamating the industry would hinder competition and reduce the risk of lower prices for gasoline and other petroleum products.
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