Idemitsu Kosan Co., the nation's second-largest oil distributor, is considering acquiring fifth-ranked Showa Shell Sekiyu K.K. through a tender offer, sources familiar with the move said Saturday.

The deal, which could trigger a broader industry realignment being urged by the government, would create a player with around ¥8 trillion (some $67 billion) in consolidated sales, trailing industry leader JX Holdings Inc., which logged about ¥12.4 trillion.

It will be the largest industry reorganization since JX was created in 2010 by integrating Nippon Oil Corp. and Nippon Mining Holdings Inc.