Japan retailer Aeon to merge with drugstore chains Tsuruha and Welcia (updated)
28/02/2024 08:49
(Recasts, add details)
TOKYO, Feb 28 (Reuters) - Japanese retailer Aeon
8267.T and drugstore chains Tsuruha 3391.T and Welcia
3141.T said on Wednesday they will merge their businesses by
2027 to form Japan's largest pharmacy.
Aeon also said it plans to spend about 102.3 billion yen
($679 million) to acquire a 13.6% additional stake in Tsuruha
from Hong Kong-based hedge fund Oasis Management. Oasis and Aeon
each have about a 13% holding in Tsuruha.
Increasing Aeon's stake would add to its drugstore business,
a key growth driver for the firm, which holds 51% of Welcia and
10% of Kusuri No Aoki Holdings 3549.T in the same sector.
The three companies said they will seek to expand their
businesses outside Japan, including the southeast Asian market.
They will hold a joint news conference about their health
and wellness business strategy at 0900 GMT Wednesday.
($1 = 150.7400 yen)
(Reporting by Kantaro Komiya and Ritsuko Shimizu; Writing by
Satoshi Sugiyama; Editing by Himani Sarkar and Alexander Smith)
((Satoshi.Sugiyama@thomsonreuters.com;))