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Don Quijote in talks to buy balance of FamilyMart’s Uny division: Nikkei
Posted on Wednesday, 10 October 2018 13:46
Discount retail player Don Quijote has entered discussions over a potential acquisition of the Uny general merchandise store unit of FamilyMart, according to the Nikkei.
Without identifying its sources, the business daily cautioned that no final decision has been made on the matter as yet and the prospective vendor is likely to determine its course of action by later this month.
The Nikkei noted that FamilyMart could instead opt to take a stake of around 20.0 per cent in Don Quijote.
When contacted by Reuters, which picked up on the original report, FamilyMart simply echoed the sentiments expressed in the article, stating that nothing has been decided as yet.
The prospective acquiror declined to comment.
Don Quijote currently owns a 40.0 per cent stake in Uny, having paid an undisclosed sum for the holding in November 2017.
This came just a few days after the firm invested JPY 31.94 billion (USD 282.50 million) in Osaka-headquartered online real estate auctioneer Japan Asset Marketing as part of a private placing of stock and in exchange for a 33.8 per cent shareholding.
FamilyMart has existed in its current form since September 2016 and now claims to be the number two convenience store business in Japan.
The company operates around 24,000 stores globally, of which 6,849 are located outside Japan, and employs some 17,777 people.
It posted gross operating revenue of JPY 316.58 billion for the three months to 31st March 2018, up from JPY 310.31 billion over the corresponding timeframe in the previous year.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 35 deals targeting convenience store operators announced worldwide since the beginning of 2018.
Of these, the largest is worth USD 2.15 billion and involved Euro Garages picking up the Kroger Company’s convenience store business back in April.
This was followed by a transaction involving FamilyMart as Itochu Retail Investment upped its holding in the company from 41.5 per cent to 50.1 per cent for USD 1.08 billion.
© Zephus Ltd