Wal-Mart to fully acquire Japan's Seiyu For $875m
Tuesday, 23 October 2007
TOKYO (AHN): US giant Wal-Mart Stores Inc. will take full control of leading Japanese retailer Seiyu Ltd., with a mission to prove that its "Everyday Low Prices" motto will work in Japan.
The world's largest retailer announced Monday that it will acquire Seiyu Ltd. for $875 million, or $1.23 per common share, a 60.9 per cent premium over the closing share price on October 19.
The Japanese merchandiser has been bleeding for the last five years and with analysts predicting that this year will not be any different, Wal-Mart is seen salvaging the household Seiyu brand.
The full acquisition comes only five years after it bought its initial stake in the Japanese supermarket operator. With the takeover, Wal-Mart, which currently holds 50.9 per cent of Seiyu, will acquire about 400 of the company's stores nationwide.
In a press statement, Wal-Mart said the takeover has the support of Seiyu's top management.
The world's largest retailer announced Monday that it will acquire Seiyu Ltd. for $875 million, or $1.23 per common share, a 60.9 per cent premium over the closing share price on October 19.
The Japanese merchandiser has been bleeding for the last five years and with analysts predicting that this year will not be any different, Wal-Mart is seen salvaging the household Seiyu brand.
The full acquisition comes only five years after it bought its initial stake in the Japanese supermarket operator. With the takeover, Wal-Mart, which currently holds 50.9 per cent of Seiyu, will acquire about 400 of the company's stores nationwide.
In a press statement, Wal-Mart said the takeover has the support of Seiyu's top management.