Magazines Archives - 2007 April
Aeon buys a stake in flagging Daiei
JAPANESE supermarket chain Aeon is buying a 15% stake in flagging retailer Daiei for ¥46.2 billion (approximately US$388 million) from the latters largest stakeholder, Marubeni Corp, which currently holds 44.6%. The move is expected to create the largest alliance in Japan.
Under the deal, Aeon will also buy 20% of Daieis supermarket operator, Maruetsu, for ¥16.5 billion.
Aeon expects the partnership to see combined sales of all three operations exceeding ¥6 trillion, surpassing current market leader Seven & I Holdings estimated annual figure of ¥5.5 trillion.
Other terms include Aeon and Marubeni buying ¥10-billion worth of each others stocks over three months, the posting of two Aeon executives to Daieis board to assist in management. Daiei currently has nine board members.