Idemitsu Kosan said it has still been unable to talk to its founding family which is opposed to the firm’s plans for a takeover of smaller rival Showa Shell Sekiyu.
The move comes after the Japanese refiner and Showa Shell put on hold their deal indefintely after running into fierce opposition from the Idemitsu founding family.
Idemitsu is expected to still press ahead with one portion of the deal, a signed agreement to acquire a 3.3% stake in Showa Shell from oil major Shell after getting approval from the nation’s antitrust regulator.
It said there had been “no change in the status quo” since earlier this month.
The company added it would like to approach the founding family “positively”.
But according to reports, the founding family has claimed it will be able to hamper this part of the transaction too after buying a small stake in Showa Shell.
The purchase means if Idemitsu buys the stake from Shell, the company may have to, by law, make a tender offer fro the rest of Showa Shell shares.
Idemitsu would be reluctant to make a tender offer since that would increase its total acquisition cost.
Asked whether Idemitsu can avoid the tender offer if it obtained the approval from Japan Fair Trade Commission, Kobayashi declined to comment.