Japan: FamilyMart to buy midsize c-store company for $108 million
Japan's third-biggest convenience store chain FamilyMart.Co has announced it will buy midsize rival Cocostore Corp. for 13 billion yen ($108 million) on October 1.
The acquisition will see FamilyMart Co. operate a network of about 12,000 shops, getting on par with Lawson Inc., the industry´s second biggest retailer.
Buying Cocostore is part of a major realignment in the c-store market with many companies seeking strength by merging or buying due to a shrinking domestic market, according to the Japan Times.
Meanwhile, it was reported that Lawson has started talks with midsize c-store operator Three F Co for a capital tie-up.
FamilyMart is also planning additional operations after merger talks with No. 4 chain UNY Group Holdings Co., operators of Circle K Sunkus stores, which would see them overtake Lawson and get a little closer to market leaders 7-Eleven Japan Co.
Cocostore has found it difficult to ground a place in the c-store market under the current conditions of intense competition. As many other small or medium retailers, joining a major company has been the only way out of a highly competitive market.
