FamilyMart Japan subject of US$5 billion takeover bid
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Japanese convenience-store chain FamilyMart will be sold outright to local trading company Itochu, according to reports.
The buyer, which currently holds 50 percent of FamilyMart business, made the decision to fully purchase the chain last Wednesday in a transaction that is expected to cost between US$4.6 billion and $5.5 billion.
The business media say the joining of the two businesses will result in a deeper level of cooperation in food procurement, consumer-goods retailing, customer-data analysis, and digital payments, among other areas.
In Thailand, the FamilyMart business was completely bought out last May by local operator Central Retail as a precursor to expanding the network in the territory.
The brand has shown signs of instability that date back before the advent of the coronavirus pandemic. Last November, FamilyMart Japan reduced its operational costs by letting go 800 employees, about one in 10 of its total staff count, and made moves to allow franchisees to operate shorter opening hours.
Questions & Answers
Q.What is the expected cost of Itochu's takeover of FamilyMart?
What is the expected cost of Itochu's takeover of FamilyMart?
The transaction for Itochu to fully purchase FamilyMart is expected to cost between US$4.6 billion and US$5.5 billion. Itochu already holds a 50 percent stake in the Japanese convenience-store chain.
Q.What benefits are expected from the full acquisition of FamilyMart by Itochu?
What benefits are expected from the full acquisition of FamilyMart by Itochu?
The joining of the two businesses is anticipated to lead to deeper cooperation in areas such as food procurement, consumer-goods retailing, customer-data analysis, and digital payments, according to business media reports.
Q.What actions did FamilyMart Japan take to reduce operational costs last year?
What actions did FamilyMart Japan take to reduce operational costs last year?
Last November, FamilyMart Japan reduced operational costs by letting go of 800 employees, which was about one in 10 of its total staff. It also allowed franchisees to operate with shorter opening hours.