Japan's Top 2 Drugstore Chains to Merge in Dec.

Tokyo, April 11 (Jiji Press)--Welcia Holdings Co., Japan's largest drugstore chain, and Tsuruha Holdings Inc., the second-largest, said Friday that they will integrate their operations on Dec. 1., two years ahead of schedule, creating a group with annual sales exceeding 2 trillion yen.

Tsuruha will make Welcia a wholly owned subsidiary through an equity swap, a deal being led by Aeon Co., a Japanese retailer that owns shares in both companies.

Aeon will boost its stake in Tsuruha to 50.9 pct through a tender offer to be conducted until January 2026. Welcia will go private on Nov. 27 this year, while Tsuruha will stay listed on the Tokyo Stock Exchange.

The merger is expected to create synergy effects worth 50 billion yen over three years, from cooperation in logistics as well as product supply and development.

With the support of Aeon, the merged company aims to achieve sales of 3 trillion yen and operating profit of 210 billion yen in the fiscal year ending in February 2032.

[Copyright The Jiji Press, Ltd.]