Japanese convenience retailer Lawson has agreed to acquire smaller rival am/pm Japan Co. for a total consideration of about JYP15.4bn (US$149.8m).
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In September, am/pm owner Rex Holdings put the country’s seventh-largest convenience chain up for sale.
Lawson, Japan’s second largest c-store operator, said today (25 February) that it and am/pm are engaged in continuing discussions under the understanding that they are working towards a merger of activities, to be completed in the spring of 2010.
Lawson said that the move would allow it to grow its footprint, particularly in the populous Tokyo metropolitan area.
“Expanding our customer base in the densely populated Tokyo metropolitan area, where demand for convenience stores is high, has been our medium- and long-term business task,” Lawson said in a statement.
“Through this acquisition, Lawson will be able to further strengthen its dominant store network as well as its customer segment base and make a significant stride towards resolving its management issues.”
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By GlobalDataLawson currently operates about 9,400 stores throughout Japan.
Am/pm has about 1,100 stores, mainly in Tokyo. It generated sales of JPY38.22bn and an operating loss of JPY3.49bn last year.
