Aeon, a major distribution company, has decided to enter into negotiations to acquire the shares of Tsuruha Holdings, a major drugstore company, from a Hong Kong investment fund. Depending on negotiations, it is possible that Tsuruha will become part of Aeon and the group will form a drugstore alliance worth 2 trillion yen.
According to the announcement, Aeon will begin exclusive negotiations to acquire the shares of Tsuruha Holdings held by Hong Kong investment fund Oasis Management.
According to the company, Oasis holds approximately 13% of Tsuruha's shares, and the number, amount, and timing of the acquisition will be considered in future discussions.
Aeon currently owns over 13% of Tsuruha's shares through its capital and business alliance with Tsuruha, but if it acquires all the shares from Oasis through this negotiation, the total will exceed 26%. There is also the possibility that Tsuruha will become a major shareholder and become a subsidiary of Aeon as a company accounted for using the equity method.
Regarding the reason for entering into negotiations for the stock acquisition, Aeon commented, ``We believe that it will help us maintain and strengthen our relationship based on our capital and business alliance with Tsuruha.''
Aeon owns Welcia Holdings, the largest drugstore company with sales of over 1 trillion yen, and if Tsuruha is included, there is a possibility that a huge drugstore alliance with sales of 2 trillion yen will be created. The outcome of the negotiations will be watched closely.
Tsuruha HD “I’m not in a position to comment”
Tsuruha Holdings responded to NHK's interview saying, ``We are not in a position to comment.''