Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<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

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<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>
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<p>I number 37, mostly firm, deals around the region.</p>
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<p>More below the fold.</p>
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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

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. 

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

MAXVALU NISHINIHON CO., LTD. is a food supermarket chain operator which is mainly located in Western part of Hyogo.  The Company mainly sells daily foods including fresh seafood, processed and frozen foods.

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Maxvalu Nishinihon (8287 JP)

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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