close 
Agreement Concluded on Integration of LP Gas Retail Operations
05/08/2014

Cosmo Oil Company, Limited (President: Keizo Morikawa; hereinafter, "Cosmo"), Showa Shell Sekiyu K.K. (Chairman/Group CEO: Shigeya Kato; hereinafter, "Showa Shell"), and Sumitomo Corporation (President: Kuniharu Nakamura) began discussions in December 2013 on integrating their domestic LP gas retail operations, and these three companies today concluded an integration agreement to establish an integrated LP Gas retail company on April 1, 2015. This integration is contingent on approval from the relevant authorities.

  • Purpose of business integration

    These corporate groups will consolidate the know-how, personnel, and assets of their LP gas retail operations to establish and continually develop a solid business foundation for LP gas retail operations and to construct a system capable of supplying LP gas more reliably and safely. To achieve that end, these corporate groups will:
    1. (1) Strengthen ties with customers and actively pursue the Home Solution businesses.
    2. (2) Reinforce the security system provided to the customers.
    3. (3) Improve management quality of the new company.
    4. (4) Boost managerial efficiency by restructuring sales companies in the Tohoku region

  • Business integration method

    1. (1) Scope of integration
      • Tohoku Cosmo Gas Co., Ltd. (wholly owned by Cosmo Petroleum Gas Co., Ltd.; hereinafter, "Tohoku Cosmo")
      • The LP gas retail operations of Sogo Energy Corporation (99.9% owned by Cosmo; hereinafter, "Sogo Energy")
      • The LP gas retail operations of Enessance Holdings Co., Ltd. (51% owned by Showa Shell, 49% by Sumitomo Corporation; hereinafter, "Enessance")
    2. (2) Integration method
      This integration will be carried out through exchanges of shares that will make Enessance a wholly owning parent company and Tohoku Cosmo a wholly owned subsidiary company. Enessance's shares will be held by Showa Shell (47.7%), Sumitomo Corporation (45.9%), and Cosmo (6.4%).
      *Prior to the share exchange, Tohoku Cosmo will succeed the rights and obligations of Sogo Energy's LP gas retail operations via an absorption-type company split.

  • Planned business integration schedule

    Conclusion of integration agreement August 5, 2014
    Conclusion of share exchange agreements Dec 2014 - Jan 2015
    Integration deadline (effective date) April 1, 2015

  • Profile of integrated retail company (tentative)

    (1) Trade name Enessance Holdings Co., Ltd.
    (2) Capital 115.8 million yen
    (3) Sales volume Approx. 220,000 tons
    (4) Sales revenue Approx. 63 billion yen
    (5) Number of households supplied Approx. 250,000
    (6) Settlement period December
    (7) Number of employees Approx. 1,500
    (8) Head office location Minato-ku, Tokyo
    (9) Subsidiaries for local retailing Hokkaido, Tohoku, Niigata, Kanto, Chubu, Kyushu

Inquiries on this matter

Showa Shell Sekiyu K.K.
Public Affairs Division
TEL: 03-5531-5793

distributed by