Aeon and Daiei to work together in Japan

Japanese supermarket giant Aeon has said that they are going to work with rival group Daiei to create Japan’s largest retail group.

The two companies are collaborating for this deal worth 62.7 billion yen. As part of this deal, Aeon would buy a 15 percent stake in Daiei from trading house Marubeni for 46.2 billion yen.

Marubeni owns around 44 percent stake in Daiei. Aeon further claimed that their deal would create Japan’s largest retail group. They would have combined sales of more than six trillion yen.

Aeon is also going to acquire 20 percent of the supermarket chain operator Maruetsu from Daiei as part of this deal signed on between the two companies.

Aeon president Motoya Okada spoke about this new development: “We, as Daiei’s new partner, will make efforts to end the current difficult situation facing Daiei. Through the advantage of scale, we will pursue cost reduction that can be passed on to our customers.”