Walmart to market 85% of Seiyu to KKR, Rakuten
18 November, 2020
Retail giant Walmart will sell 85 percent of its Japanese subsidiary Seiyu to investment firm KKR and e-commerce group Rakuten, the pair announced Monday.
The offer, which values Seiyu at 172.5 billion yen ($1.6 billion), is expected to close in the 1st quarter of up coming year, with New York-based KKR acquiring 65 percent of the supermarket chain.
Japan's Rakuten -- which previously set up a great online grocery delivery assistance with Seiyu in 2018 -- will purchase 20 percent and create a new subsidiary known as Rakuten DX Solution centered on internet sales.
Walmart will keep the remaining shares in Seiyu, that was founded found in the 1960s and has a lot more than 300 stores in Japan.
The U.S. retail behemoth initial obtained a stake in Seiyu in 2002 and later made it a wholly owned subsidiary despite poor economic results.
The agreement "allows Seiyu to take advantage of the combined organization expertise of KKR, Rakuten and Walmart... and accelerate its digital transformation", Monday's statement said.
Source: japantoday.com
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