THE JAPAN NEWS


 

TOKYO (Jiji Press) — Mitsubishi Corp. plans to launch a tender offer for Lawson Inc., the third-largest convenience store chain in the country, in a bid to raise its equity stake to over 50 percent from 33.4 percent at present, informed sources said Thursday.

The share acquisition to make Lawson a subsidiary is estimated to cost over ¥100 billion, the sources said. Mitsubishi is expected to make a formal decision on the tender offer as early as this week.

Mitsubishi aims to beef up Lawson’s earnings capacity through deeper involvement in its management to help the convenience store operator catch up with its larger industry rivals — Seven-Eleven Japan Co., a unit of retail giant Seven & i Holdings Co., and FamilyMart Uny Holdings Co.

Amid intensifying competition in the Japanese retail industry, Mitsubishi is looking to expand Lawson’s overseas operations, which have lagged behind those of the rivals. The trading house plans to utilize its networks abroad to reinforce Lawson’s food procurement and product development capabilities, according to the sources.

Mitsubishi will also provide Lawson with its expertise in financial and other fields outside the convenience store business, the sources said.
On Sept. 1, FamilyMart Uny was formed through the business integration of industry rivals FamilyMart Co. and Uny Group Holdings Co., which owns the Circle K and Sunkus convenience store chain.

FamilyMart Uny became the second-ranking convenience store operator in terms of the number of outlets, coming close to industry leader Seven-Eleven Japan. Lawson fell to third place.

In June, Sadanobu Takemasu, a former Mitsubishi official, became president of Lawson, launching efforts to strengthen the two companies’ collaborative relations.

After their earnings were squeezed by falls in natural resources prices, major Japanese trading companies are putting a greater focus on operations in nonresources fields, such as the retail business.

Among them, Itochu Corp. has a 33.4 percent stake in FamilyMart Uny Holdings, while Mitsui & Co. owns a 1.8 percent interest in Seven & i Holdings. Both traders are boosting ties with the convenience store operators in procurement and distribution.