Japan drugstores plan mega-merger Oct 2021 -report (updated)
31/01/2020 05:12
(Adds background on industry)
TOKYO, Jan 31 (Reuters) - Japanese drugstore company
MatsumotoKiyoshi Holdings 3088.T and rival Cocokara Fine Inc
3098.T plan to merge in October 2021, the Nikkei financial
daily said on Friday, a move which would create the country's
biggest chain of discount pharmacies.
The two companies announced last August that they were
discussing a possible merger to cope with tough price
competition. urn:newsml:reuters.com:*:nL4N25A12C
MatsumotoKiyoshi will initially acquire 20% of Cocokara Fine
shares, the Nikkei said. Financial terms of the deal were not
disclosed in the report.
Company representatives were not immediately available for
comment, and trading in both of their shares were suspended in
the afternoon.
With combined annual revenues of over 1 trillion yen ($9
billion) this year, a merger would make them even bigger than
market leader Tsuruha Holdings 3391.T , which forecasts 820
billion yen ($7.5 billion) in revenue this year.
Popularly known as "Matsukiyo", MatsumotoKiyoshi started as
a mom-and-pop pharmacy in the 1930s. The chain pioneered
discount cosmetics and became popular for a casual format which
encouraged customers to sample products.
($1 = 109.7000 yen)
(Reporting by Ritsuko Ando; Editing by Christian Schmollinger &
Shri Navaratnam)
((Ritsuko.Ando@reuters.com; +81 3 6441 1743;))