Japan's CEH to Raise Stake in Maruzen Petchem

Japan based Cosmo Energy Holdings (CEH) said on Friday it would buy additional shares in affiliate Maruzen Petrochemical Co later this month to turn it into a subsidiary in a bid to shore up competitiveness amid shrinking domestic petrochemical demand.

Cosmo Energy Holdings, which has a 43.9 percent voting right in Maruzen, will buy shares from JNC Corp at an undisclosed price and increase its voting rights to 52.7 percent, the company said in a statement.

Cosmo will eventually consider turning Maruzen into a wholly-owned subsidiary, a company spokesman added.

Maruzen operates a 525,000 tonnes-per-year naphtha cracker in Chiba, eastern Japan, next to Cosmo's oil refinery.