Japan’s two biggest oil refiners, JX Holdings Inc. and TonenGeneral Sekiyu K.K., said they are in talks to merge after the Nikkei newspaper reported the two companies reached a broad agreement on a deal. JX and TonenGeneral are considering a business integration, though no decision has been made, they said in separate statements on Wednesday. The refiners plan to merge by 2017 after getting approval from the Fair Trade Commission, the Nikkei newspaper reported, without citing anyone. “Due to the severe business environment surrounding the oil industry, we are considering the merger with TonenGeneral in order to strengthen the competitiveness of our petroleum business,” JX Holdings said in its statement. The Japanese government is encouraging refiners to consolidate and to cut processing capacity amid declining fuel demand. If a deal between JX and TonenGeneral is completed, the new company would control about half of the country’s gasoline market while […]