Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>Today, <a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a>-controlled supermarket companies <a href="https://www.smartkarma.com/entities/fuji-co-ltd-ehime" target="_blank" data-smartkarma-citation="entities:11419:1" rel="noopener">Fuji Co Ltd (8278 JP)</a> ("<strong>Fuji</strong>") and <a href="https://www.smartkarma.com/entities/maxvalu-nishinihon-co-ltd" target="_blank" data-smartkarma-citation="entities:13743:1" rel="noopener">Maxvalu Nishinihon (8287 JP)</a> ("<strong>MVNN</strong>") announced the Exchange Ratio for the first stage of their integration process.</li>
<li>This Deal is part of a long-term restructuring exercise carried out by Aeon. I previously discussed this Transaction in <a href="https://www.smartkarma.com/insights/fuji-8278-maxvalu-nishinihon-8287-aeon-family-supermarket-integration" target="_blank" data-smartkarma-citation="insights:57161" rel="noopener">Fuji (8278) &amp; Maxvalu Nishinihon (8287): Aeon Family Supermarket Integration</a>.  </li>
<li>Below is a look at the details of the latest update to this Transaction.</li>
</ul>


Today, Aeon Co Ltd (8267 JP)-controlled supermarket companies Fuji Co Ltd (8278 JP) ("Fuji") and Maxvalu Nishinihon (8287 JP) ("MVNN") announced the Exchange Ratio for the first stage of their integration process.
This Deal is part of a long-term restructuring exercise carried out by Aeon. I previously discussed this Transaction in Fuji (8278) &amp; Maxvalu Nishinihon (8287): Aeon Family Supermarket Integration.  
Below is a look at the details of the latest update to this Transaction.


Fuji (8278) & Maxvalu Nishinihon (8287): Merger Ratio Announced. Deal Done in 3 Months.

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>Aeon is on the acquisition trail again and not only in the drugstore sector through its <a href="https://www.smartkarma.com/entities/welcia-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:20895:1" rel="noopener">Welcia Holdings (3141 JP)</a> subsidiary.</li>
<li>Japan's biggest retailer also consolidated its hold on the island of Shikoku by increasing its stake in Fuji and will now own more than 20% of all retail sales.</li>
<li>Signalling its ambitions to carve out a large share of the discount market, Aeon also acquired the 100 YEN retailer, <a href="https://www.smartkarma.com/entities/can-do-co-ltd" target="_blank" data-smartkarma-citation="entities:6879:1" rel="noopener">Can Do Co Ltd (2698 JP).</a>
</li>
</ul>


Aeon is on the acquisition trail again and not only in the drugstore sector through its Welcia Holdings (3141 JP) subsidiary.
Japan's biggest retailer also consolidated its hold on the island of Shikoku by increasing its stake in Fuji and will now own more than 20% of all retail sales.
Signalling its ambitions to carve out a large share of the discount market, Aeon also acquired the 100 YEN retailer, Can Do Co Ltd (2698 JP).



Aeon Consolidates Through Fuji and Steps up Discounting Via Can Do

<p><a href="https://www.smartkarma.com/entities/aeon-co-ltd" target="_blank" data-smartkarma-citation="entities:3:1" rel="noopener">Aeon Co Ltd (8267 JP)</a>-controlled supermarket companies <a href="https://www.smartkarma.com/entities/fuji-co-ltd-ehime" target="_blank" data-smartkarma-citation="entities:11419:1" rel="noopener">Fuji Co Ltd (8278 JP)</a> ("<strong>Fuji</strong>") and <a href="https://www.smartkarma.com/entities/maxvalu-nishinihon-co-ltd" target="_blank" data-smartkarma-citation="entities:13743:1" rel="noopener">Maxvalu Nishinihon (8287 JP)</a> ("<strong>MVNN</strong>") announced they had agreed to merge in a long-dated transaction which will complete in March 2024.</p><p>Prior to that, both companies will establish a joint holding company to become a consolidated subsidiary of Aeon and integrate the management. This process is expected to be completed by March 2022. </p><p>Below is a closer look at the details of this transaction.  </p><hr><div><div><p><em>For more information about M&amp;A rules, regulations, and practices in Japan, please refer to <a href="https://www.smartkarma.com/insights/quiddity-japan-m-a-guide-2019" target="_blank" data-smartkarma-citation="insights:28911" rel="noopener">Quiddity Japan M&amp;A Guide 2019</a> </em></p></div></div>

Aeon Co Ltd (8267 JP)-controlled supermarket companies Fuji Co Ltd (8278 JP) ("Fuji") and Maxvalu Nishinihon (8287 JP) ("MVNN") announced they had agreed to merge in a long-dated transaction which will complete in March 2024.Prior to that, both companies will establish a joint holding company to become a consolidated subsidiary of Aeon and integrate the management. This process is expected to be completed by March 2022. Below is a closer look at the details of this transaction.  For more information about M&amp;A rules, regulations, and practices in Japan, please refer to Quiddity Japan M&amp;A Guide 2019 

Fuji (8278) & Maxvalu Nishinihon (8287): Aeon Family Supermarket Integration

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

<div>
<p>This insight provides a quick summary of gross/annualised (where possible) spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks.</p>
</div>
<div>
<p>I number 37, mostly firm, deals around the region.</p>
</div>
<div>
<p>More below the fold.</p>
</div>


This insight provides a quick summary of gross/annualised (where possible) spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and how those spreads have changed over the last week; plus the next hard events over the coming weeks.


I number 37, mostly firm, deals around the region.


More below the fold.


Asia-Pac Weekly Risk Arb Summary: China Logistics, Kerry Logistics, China Youzan

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/3" target="_blank" data-smartkarma-citation="entities:3:1">Aeon (8267 JP)</a> will radically restructure its entire supermarket operation over the next 18 months, merging 14 chains into the same seven regional administrations set up to run its GMS (General Merchandise Store) chains.</p>
<p>The move has been a long time coming and will lead to further integration and rationalisation of Aeon’s many supermarket subsidiaries.</p>
<p>The group is expecting an immediate, positive impact on profits, and this is probable given similar improvements in profitability following rationalisation at its biggest supermarket operation, <a href="https://www.smartkarma.com/entities/26107" target="_blank" data-smartkarma-citation="entities:26107:1">United Super Markets (3222 JP)</a>.</p>
<p>At the same time, Aeon – which is essentially an agglomeration of acquisitions – continues to buy regional businesses in order to consolidate its already large share of food and drugstore retailing. It bought a stake in <a href="https://www.smartkarma.com/entities/11419" target="_blank" data-smartkarma-citation="entities:11419:1">Fuji Co Ltd (8278 JP)</a>, a major retailer in Shikoku, and indirectly, in Masaya, a drugstore chain in Okayama.</p>

Aeon (8267 JP) will radically restructure its entire supermarket operation over the next 18 months, merging 14 chains into the same seven regional administrations set up to run its GMS (General Merchandise Store) chains.
The move has been a long time coming and will lead to further integration and rationalisation of Aeon’s many supermarket subsidiaries.
The group is expecting an immediate, positive impact on profits, and this is probable given similar improvements in profitability following rationalisation at its biggest supermarket operation, United Super Markets (3222 JP).
At the same time, Aeon – which is essentially an agglomeration of acquisitions – continues to buy regional businesses in order to consolidate its already large share of food and drugstore retailing. It bought a stake in Fuji Co Ltd (8278 JP), a major retailer in Shikoku, and indirectly, in Masaya, a drugstore chain in Okayama.

Aeon: Major Overhaul of Supermarkets, Ties with Fuji (8278)

Japan

FUJI CO., LTD. operates shopping center chain mainly in the Shikoku and the Chugoku regions.  The Company mainly sells foodstuffs, clothing, and sundry goods.  Fuji also operates home entertainment stores, BACH, which sells books, CDs, videos, and video games.  The Company also operates sports fitness centers. The Company provides credit card service.

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Fuji Co Ltd (8278 JP)

Fuji (8278) & Maxvalu Nishinihon (8287): Merger Ratio Announced. Deal Done in 3 Months.

Aeon-controlled supermarket companies Fuji Co Ltd and Maxvalu Nishinihon announced the Exchange Ratio for their Merger. It doesn't seem wholly fair...

Janaghan Jeyakumar, CFA

Aeon Consolidates Through Fuji and Steps up Discounting Via Can Do

Aeon continues to consolidate retail share. Its acquisition of Fuji will give it 20% share of all retail sales in Shikoku while its purchase of Can...

Michael Causton

Fuji (8278) & Maxvalu Nishinihon (8287): Aeon Family Supermarket Integration

The large number of Maxvalu listed subs dwindles as Aeon slowly executes mergers and integrations. This time Fuji will take over MVNN. This will...

Janaghan Jeyakumar, CFA

Asia-Pac Weekly Risk Arb Summary: China Logistics, Kerry Logistics, China Youzan

This insight provides a summary of gross/annualised spreads (on deals discussed on Smartkarma) across Asia-Pacific as at the last trading date, and...

David Blennerhassett

Aeon: Major Overhaul of Supermarkets, Ties with Fuji (8278)

Aeon (8267 JP) will radically restructure its entire supermarket operation over the next 18 months, merging 14 chains into the same seven regional...

Michael Causton

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