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Itochu to launch bid to balance of FamilyMart: Nikkei
Posted on Wednesday, 08 July 2020 10:11
Japanese conglomerate Itochu is on the verge of submitting a takeover approach to pick up the remaining stock it does not already own in convenience store operator FamilyMart.

The company currently holds a 50.1 per cent stake in the Tokyo-listed company.

Without identifying its sources, the business journal said the deal for the balance of the business is expected to be worth between JPY 500.00 billion (USD 4.65 billion) and JPY 600.00 billion (USD 5.58 billion).

It added that the purchase will enable the parties to deepen their ties in the procurement of food and consumer goods, customer data analysis and digital payments.

As yet, it is not clear when the approach for the remaining stake is likely to be launched.

FamilyMart claims to be the number two convenience store operator in Japan, with locations in all 47 prefectures.

The company operates some 24,573 stores worldwide and employs 13,955 people.

It posted core operating profit of JPY 64.55 billion in fiscal 2019, up from JPY 51.55 billion over the preceding 12 months.

Zephyr, the M&A database published by Bureau van Dijk, shows that Itochu’s most recent acquisition of a majority stake was announced in December, when it signed on the dotted line to pick up 90.0 per cent of Japanese risk credit and deferred payment services provider Gardia.

There have been 14 deals targeting convenience store operators announced worldwide since the beginning of 2020, Zephyr shows.

Of these, the most valuable was worth USD 17.86 million and took the form of a minority stake sale as Megah Eraraharia sold a 0.6 per cent holding in Indoritel Makmur Internasional in March.

Other companies in the sector to have been targeted since the beginning of the year include SHiDAX I, 7-Eleven Malaysia and Brown-Thompson General Partnership.

© Zephus Ltd