Friday, December 5, 2008

Wal-Mart will buy Japan's Seiyu

Wal-Mart Stores is going to fully redeem the Japanese network Seiyu. This network will be required to spend up to $ 872.6 million Wal-Mart, which is now owned 50,9% stake in the Japanese network, will pay $ 1.22 per share.

The challenge, at least Wal-Mart - to gain control over two-thirds of ordinary shares in the company. If the tender will be successful, the company will redeem all outstanding shares in order to bring Seiyu from the Tokyo Stock Exchange listing. The proposal to purchase shares done with the permission of the Board of Directors of Seiyu.

Since coming to the Japanese market in 2002, Wal-Mart to increase gradually in Seiyu, which owns 400 stores across the country. Wal-Mart decided not to change the brand online, a close Japanese on their own. In addition to Seiyu, Wal-Mart is actively investing and other Japanese assets. It has established distribution network here, has established its own computer systems, redesign shops and supermarkets built, until it has been rare.

But Seiyu still have to compete with smaller retail networks, and with local companies that offer great shopping format Wal-Mart.

In the past five years, Seiyu recorded losses. At the most profitable Wal-Mart this year negatively impacted falling consumer demand not only in North America and abroad.

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