Japan’s FamilyMart inks RM7.9b Don Quijote deal

By BLOOMBERG

TOKYO • FamilyMart UNY Holdings Co Ltd, Japan’s second-largest convenience- store operator, will acquire a stake in discounter Don Quijote Holdings Co Ltd in a deal valued at ¥212 billion (RM7.9 billion), the company announced yesterday.

Don Quijote will become the fourth-largest retailer in Japan by sales after it buys a remaining 60% stake in FamilyMart unit Uny that it doesn’t already own for ¥28.2 billion. The unit operates a chain of general merchandising stores and will become a wholly owned subsidiary of Don Quijote.

FamilyMart will offer ¥6,600 per share for the Don Quijote stake, a 19% premium over Tuesday’s closing price, before speculation on the deal surfaced.

Japan’s saturated convenience-store market has been squeezed by tough competition between three top operators seeking new ways to grow.

The deal will keep Uny under the FamilyMart umbrella and gives the convenience- store owner a stake in Don Quijote, a retailer respected for posting double- digit growth figures and succeeding in Japan’s tough retail environment.

The announcement deepens a partnership between the two companies. Don Quijote took a 40% stake in FamilyMart’s Uny in 2017, allowing it to operate some of its stores under a joint brand. The two companies are also cooperating on product development and distribution.

FamilyMart, in statement, said it chose to partner Don Quijote as the two don’t compete for the same retail shoppers.