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Seiyu shares surge 13 percent on report Wal-Mart considering Japan takeovers

Seiyu shares surge 13 percent on report Wal-Mart considering Japan takeovers

Shares in Wal-Mart's Japanese subsidiary, Seiyu Ltd., surged 13 percent Monday after a top executive of the U.S. retail chain said in a newspaper interview that it was looking for takeover opportunities in Japan.
Wal-Mart Vice Chairman Michael Duke told Japan's Nikkei business daily that Wal-Mart welcomed Japanese deregulation taking affect this May that will allow foreign companies to buy out domestic firms through stock-swaps with local subsidiaries.
The changes would allow Wal-Mart more leverage in local takeovers through Seiyu, which is 53.34 percent owned by the Bentonville, Arkansas-based retailer.
Investors rallied behind the news, optimistic about a realignment in Japan's retail sector. Seiyu's shares rose 22 yen, or 13 percent, to 190 yen (US$1.57; euro1.22) on the Tokyo Stock Exchange.
Late last year, Wal-Mart Stores Inc. lost in its bid to form a partnership with troubled Japanese retailer Daiei Inc., which eventually combined with local rival Aeon Co. to work on a revival plan.
But Duke said in the interview published Saturday that Wal-Mart was still looking for future acquisitions opportunities. He declined to say whether his company would consider hostile takeovers.
Since arriving in Japan in 2002, Wal-Mart Stores Inc. _ the world's biggest retailer _ has been gradually raising its stake in Seiyu, the nation's fifth-largest chain with more than 400 stores.
But Seiyu has been losing money and struggling to win over shoppers renowned for being both fickle and picky. As part of its drive to overhaul its business, Seiyu rolled out plans to remodel 65 stores.


Updated : 2021-05-12 13:55 GMT+08:00