Comprehensive M&A data with integrated detailed company information

Cocokara sees more collaboration options with Matsumotokiyoshi
Posted on Wednesday, 14 August 2019 10:28
Cocokara Fine is backing a takeover proposal by rival Matsumotokiyoshi Holdings over one by Sugi Holdings in a move that may pave the way for a drugstore industry leader with sales of JPY 1,000 billion (USD 9.44 billion). A special committee formed to review the approaches decided the company would be better off pursuing merger talks with the Matsudo-headquartered pharmacy. It noted an integration with Matsumotokiyoshi is more likely to contribute to increased corporate value in the medium- and long-term, not to mention it should improve the efficiency of store operations and private brands. Furthermore, there is a possibility a combination would lead to more cost-savings within areas such as product development, among others. At the end of April, Cocokara and Matsumotokiyoshi announced they would discuss a capital alliance with a view to long-term development and continuous collaboration. However, on 1st June, Sugi revealed it made a formal business integration proposal in late April to create a leading player in providing local healthcare to nursing care and attentiveness for terminally ill patients, among other things. Matsumotokiyoshi then announced a couple of days later it too would be open to a merger with Cocokara, which subsequently formed a special committee to weigh the two approaches. Sugi has now decided to terminate talks after failing to enter into a basic letter of consent and said it would continue to further reinforce efforts in the over-the-counter segment. The scale of the drugstore industry in Japan continues to expand as the healthcare market grows on the back of the aging population in Japan. However, competition has intensified as competitors have rapidly opened stores and players have spread out into different business categories, types and purchase channels. Cocokara had 1,354 drugstores and pharmacies stores, as of 31st March 2019, under brands such as Cocokara Fine, Kusuri Seijo and Drug Segam. © Zephus Ltd