Idemitsu acquires stake in Fuji Oil, enhancing strategic partnership

Idemitsu Kosan Co. Ltd., a leading Japanese petroleum company, has successfully acquired a significant share in Fuji Oil Company Ltd., solidifying a strategic partnership aimed at enhancing business synergy and market competitiveness. The acquisition, which involves 6,839,920 shares, represents 8.75% of Fuji Oil’s total issued shares. This move comes as part of a capital and business alliance agreement announced on April 16, 2024.

Idemitsu Kosan, founded in 1911, is one of Japan’s largest petroleum companies, with a diverse portfolio spanning oil exploration, production, refining, and retail. Fuji Oil, a prominent player in the refining industry, has a long-standing history of innovation and excellence in oil processing and product development.

The transaction, completed following approval from the Fair Trade Commission, raises Idemitsu’s total ownership in Fuji Oil to 21.79%. This significant stake enables Idemitsu to classify Fuji Oil as an equity method affiliate, allowing for closer collaboration between the two companies.

Shunichi Kito, representative director and chief executive officer of Idemitsu Kosan, emphasised the strategic importance of this acquisition. “By strengthening our partnership with Fuji Oil, we aim to enhance our operational efficiencies and expand our presence in the market,” Kito said.

Fuji Oil, known for its extensive oil refining and production capabilities, is expected to benefit from Idemitsu’s resources and expertise, fostering innovation and growth. The alliance is anticipated to drive competitive advantages for both companies, leveraging their combined strengths in the petroleum industry.

Despite the scale of the transaction, Idemitsu reports that the acquisition will have an insignificant impact on its financial performance. The company remains focused on its long-term growth strategy, which includes enhancing its core business areas and exploring new opportunities for expansion.

The collaboration between Idemitsu and Fuji Oil marks a significant development in Japan’s petroleum sector, reflecting a broader trend of consolidation and strategic partnerships aimed at bolstering resilience in a rapidly evolving energy landscape.