Wal-Mart has raised its stake in Japanese supermarket operator Seiyu to more than 34 percent from 6.1 percent.
The U.S.’s largest retailer said the increase follows the completion of an in-depth study of Seiyu’s operations and the Japanese market, which revealed the two to be potential growth opportunities, said John Menzer, president and chief executive officer of Wal-Mart International, in a statement.
Wal-Mart will acquire 192,800,000 new shares in Seiyu at 270 yen per share, reflecting an investment of 52.056 billion yen, or U.S. $420 million. The share purchase is scheduled to occur on Dec. 27.
The deal will make Wal-Mart Seiyu’s largest single stockholder. Wal-Mart acquired its initial 6.1-percent stake in Seiyu last May, with the option to increase its stake in the company.
to Daily News