JAPAN: Aeon To Discuss Buying 15% Of Daiei

Aeon Co. has said it will hold talks to buy a 15% stake in Daiei, which could create Japan's biggest retail group with combined sales of over 6trn yen ($50bn). The move would give the retailers strong procurement power and cost competitiveness and could trigger further consolidation in the industry. Aeon, Daiei, and Marubeni will also discuss the possibility of jointly developing private brands, sharing systems, and purchasing goods together.

Trading house Marubeni, Daiei's top shareholder with a 44.6% stake, has been looking for a partner to restructure Daiei because of its lack of expertise in the retail industry. Aeon said it would also hold discussions to buy a 20% stake in Daiei's grocery subsidiary Maruetsu. An investment in Maruetsu, which operates 190 stores with annual sales of 330bn yen, would strengthen Aeon's grocery operations in the metropolitan Tokyo area.