View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
May 23, 2002

JAPAN: Seiyu shareholders approve first step of Wal-Mart takeover plan

Japan’s fifth largest supermarket chain Seiyu has announced that the tie-up plan with US retail giant Wal-Mart Stores announced in March was approved by shareholders at regular meeting earlier today [Thursday]. Wal-Mart will initially purchase a 6.1% stake in Tokyo-based Seiyu for ¥6bn (US$46m), with a view to retaining the ultimate right to take over the company at a later date. Earlier this week, news reports speculated that the deal would be rejected however because the price was too low.

Japan’s fifth largest supermarket chain Seiyu has announced that the tie-up plan with US retail giant Wal-Mart Stores announced in March was approved by shareholders at regular meeting earlier today [Thursday].

Wal-Mart will initially purchase a 6.1% stake in Tokyo-based Seiyu for ¥6bn (US$46m), with a view to retaining the ultimate right to take over the company at a later date. Earlier this week, news reports speculated that the deal would be rejected however because the price was too low.

Wal-Mart said that eventually it would spend ¥260bn to increase its 6.1% stake to 66.7%, a transaction that will take place before 2007.

Meanwhile, Japanese trading house Sumitomo Corp., which currently ranks as Seiyu’s top shareholder, announced that it will pay ¥5bn to increase its stake to 15.6%.

Related Companies

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food