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Leading Japanese refiner, Idemitsu Kosan has announced that it has entered into an agreement to acquire all shares of Sumisho Oil, Sumitomo's wholly owned oil products retailer, in an effort to strengthen its local distribution network following a recent fall in demand Reuters reports.

Tokyo-based Sumisho Oil Corp, which sells heavy fuel oil to factories and ships and gasoline via petrol stations, is reported to sell over 11 million barrels of refined products a year and to have achieved revenues of 120.6 billion yen (US$1.2 billion) in the financial year ended March 2007.

Sumisho Oil currently purchases approximately 6.29 barrels of oil products per year from Idemitsu. The company will become a subsidiary of Idemitsu in July 2008.

Idemitsu Kosan Co. Ltd. is Japan's third largest refiner and a leading marine fuels and lubricants supplier in the local market, covering all major Japanese ports.

Trading house Sumitomo Corporation acts as supplier and trader in the Japanese bunker market and also has representative offices in Singapore and the United Kingdom.