Sept 19 (Reuters) - Japanese oil refiner TonenGeneral Sekiyu KK plans to buy retailer Mitsui Oil Co for about 40-50 billion yen ($404 million-$505 million) next year as the industry consolidates amid falling domestic demand, the Nikkei said.
TonenGeneral, in which Exxon Mobil Corp holds a 22.2 percent stake, and Mitsui Oil expect to reach an agreement by the end of March, the business daily said.
Mitsui Oil is a unit of Japanese trading house Mitsui & Co .
A declining, ageing population and a shift to less polluting vehicles have reduced Japan’s fuel consumption. Japanese oil refiners will cut their capacity to the lowest in four decades next year to meet a government mandate to slim the bloated sector.
After the deal, TonenGeneral will also take control of Kyokuto Petroleum Industries Ltd, its 50-50 refining joint venture with Mitsui Oil, the Japanese paper said.
Mitsui & Co plans to use the proceeds from the sale to buy about 10 percent stake in TonenGeneral from Exxon Mobil, the paper said.