Japanese consumer electronics retailer Yamada Holdings Co (TYO:9831) plans to merge with rival retailer Edion (TYO:2730), according to a Nikkei report on Thursday.
The boards of both companies will reportedly hold meetings this week to reach a preliminary agreement on the merger and decide whether to establish a holding company for the merged operations.
Nikkei estimates that if the merger goes through, the combined sales figures of the two would be nearly 2.5 trillion yen, making the new company the largest electronics retail chain in Japan.
In response to the news report, Edion acknowledged that it is considering a potential merger with Yamada; however, no definitive decision has been reached at this stage.
The matter is scheduled for review at a board of directors meeting tomorrow, and any material developments will be disclosed promptly, Edion said in a filing to the Tokyo bourse on Thursday.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)