JX Holdings Inc., the nation's largest oil distributor, has agreed to merge with rival TonenGeneral Sekiyu K.K., sources said Wednesday, in a further push for refinery consolidation amid falling demand for oil products.
The move comes after Idemitsu Kosan Co., the No. 2 player in the sector, agreed last month to integrate businesses with Showa Shell Sekiyu K.K. as early as next October.
JX and TonenGeneral, which ranks third, have already acknowledged they are in merger talks. They are expected to announce the deal by the end of the week.