The company has entered into an agreement to buy an additional 13.6 per cent stake in Tsuruha and is planning to merge the drugstore chain with its Welcia business over the next few years.
Aeon bought the Tsuruha stake from Hong Kong-based hedge fund Oasis Management for 102.3bn yen (US$679M). Oasis and Aeon each have about a 13 per cent holding in Tsuruha.
The retail giant plans to acquire more in stages to merge Tsuruha with Welcia by 2027, forming Japan’s largest pharmacy. The companies will also seek to expand their businesses outside Japan, including the Southeast Asian market.
According to Nikkei, Welcia is expected to become a wholly-owned subsidiary of Tsuruha through share exchanges. Welcia is likely to be delisted, while Tsuruha will become a consolidated subsidiary of Aeon around 2027.
