Yamada (TYO:9831) and Edion (TYO:2730) have signed a memorandum of understanding to pursue a business integration based on an equal partnership amid intense competition.
The proposed integration would create a retail giant with 2.5 trillion yen in combined sales, allowing the companies to pursue economies of scale through joint purchasing and lower procurement costs amid intensifying competition from online rivals and overseas manufacturers.
Under the plan, both companies would become wholly owned subsidiaries of a new holding company via a share transfer, with the integrated entity expected to list on the Tokyo Stock Exchange's Prime Market around Oct. 1, 2027, according to a Friday filing.
The new holding company's leadership structure would see Noboru Yamada of Yamada serve as Representative Director, chairman and co-CEO, while Masataka Kubo of Edion would serve as representative director, president and co-CEO.