Sumitomo Mulling Investment in Ito-Yokado

Tokyo, Nov. 27 (Jiji Press)--Sumitomo Corp. is considering investing in an intermediate holding company that controls supermarket chain Ito-Yokado Co., people familiar with the matter said Wednesday.

The Japanese trading house apparently hopes for a synergy effect between the Summit supermarket chain it operates in the Tokyo metropolitan area and Ito-Yokado.

The intermediate holding company, York Holdings Co., was established as a wholly owned subsidiary of Seven & i Holdings Co. last month to oversee operations at Ito-Yokado, baby goods retailer Akachan Honpo Co., the restaurant chain Denny's and other units.

Seven & i plans to sell some York shares with the first bidding round for them scheduled to close on Thursday.

In addition to Sumitomo, U.S. investment funds Bain Capital and KKR are also considering bidding for the York shares.

[Copyright The Jiji Press, Ltd.]