Association of Nippon Oil and Nippon Mining suspended

26.02.2009

Japan's largest oil company Nippon Oil Corp. and Nippon Mining Holdings Inc., the largest Japanese producer of copper laid association, to be held in October this year due to the fact that companies needed more time to agree the details and preparation of documents for the U.S. market regulators. This is the agency Bloomberg, referring to unnamed sources.

Reportedly, the two companies improperly evaluated the time it takes for them to eliminate the differences in Japanese and American accounting rules. The U.S. Commission for Securities of such calls from companies, the proportion of American shareholders in over 10%. In Nippon Mining the Americans at this time share is 31%, in Nippon Oil - 9,7%.

Agreement on the merger of Nippon Oil and Nippon Mining Holdings smelting had to be concluded this month. By October the completion of the planned merger of two companies, after which, under their joint control would be up to 35% of Japanese oil products market. Now, to be postponed for several months. Experts explain the merging of industrial giants of economic environment - in terms of adverse effects of the crisis is easier to fight through joint efforts.

Both companies seek to improve its operating and financial stability against the backdrop of a sharp decline in world commodity prices. Sales of the combined company in 2009 could reach $ 140 billion This is the third result in Japan. Savings from the combined management is estimated at 60 billion yen ($ 800 million) a year.