March 10, 2015 / 7:22 AM / 4 years ago

Japan's FamilyMart, UNY to merge in September 2016

Signboards of FamilyMart and UNY Group Holdings Co's Sunkus (L) convenience stores are pictured in Tokyo March 6, 2015. REUTERS/Toru Hanai

TOKYO (Reuters) - FamilyMart Co Ltd (8028.T) and UNY Group Holdings Co Ltd 8270.T on Tuesday said they have agreed to merge in 2016, a move that would create Japan’s second-biggest convenience store operator by sales.

Third-placed FamilyMart will be the surviving entity when it merges with the owner of fourth-ranked Circle K Sunkus in September next year, the companies said in a statement.

The pair said it will consider integrating the two convenience store chains under a single brand, though details including the merger ratio have yet to be decided.

FamilyMart and UNY on Friday said they were considering a merger to increase their competitiveness in a saturated market, grappling with a slump in consumer spending since a rise in the national sales tax last April.

Data from the Japan Franchise Association showed same-store sales at convenience stores fell 0.7 percent in January from the same period a year earlier, the 10th straight month of decline.

The merger would see the combined annual revenue of FamilyMart and UNY’s convenience stores eclipse that of second-ranked Lawson Inc (2651.T) and close in on leader Seven-Eleven Japan, owned by Seven & i Holdings Co Ltd (3382.T).

Shares of UNY have gained about 10 percent whereas those of FamilyMart have fallen 3.5 percent since the companies said they were studying a merger.

FamilyMart has a market value of about $4.3 billion, about three times UNY’s $1.4 billion.

($1 = 121.7300 yen)

Reporting by Taiga Uranaka; Editing by Chris Gallagher and Christopher Cushing

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below