US retail behemoth Wal-Mart said today [Thursday] it would acquire a minority stake in the Seiyu supermarket group in Japan.
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While Wal-Mart will initially acquire just a 6.1% stake in the chain, it will also have the right to take the chain over. “Under the agreement Wal-Mart would have the ability to inject up to ¥260bn (US$2.0bn) of new equity into Seiyu, raising its stake up to 66.7% over time,” Wal-Mart said in a joint statement with Japan’s fifth-largest supermarket operator and trading house Sumitomo Corp.
Wal-Mart is not the only party interested in taking Seiyu forward – Sumitomo is also to pay ¥5bn to acquire a further 5.1% stake to boost its current stake in Seiyu to 15.6%.
Analysts welcomed the partnership, as it will finally give Wal-Mart access to the world’s second largest consumer market, while Seiyu gains a welcome injection of capital. Two years ago Wal-Mart entered into talks with another Japanese retailer, Daiei, but the negotiations failed to reach fruition.
Seiyu shares rallied by their maximum daily limit today on the news, rising 26.7% to ¥380.
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