Japanese drug stores Matsumotokiyoshi and Cocokara Fine joined forces

Japanese pharmacy chains Matsumotokiyoshi and Cocokara Fine are entering into a merger.

Under the terms of the new agreement – if approved by the boards of both sides – shares in the two firms will be transferred to a new business entity, with the transaction expected to be completed by October next year

The company that emerges from the new deal will lead the health and beauty market, with 3000 outlets trading at around ¥1 trillion (US$9.2 billion).

Cocokara was previously courted for a merger by Sugi Holdings, although the firm ultimately decided to partner with Matsumotokiyoshi.