Life Corporation has announced its intention to acquire Albis, which is based in Hokuriku. The tender offer is valued at up to ¥26.3 billion, with Mitsubishi Corporation, a major shareholder in both companies, also a factor behind the deal.
Consolidation in the supermarket industry is gathering pace, with moves to survive independently becoming more active as rising food procurement costs and labor expenses put pressure on management. A succession of M&A deals is accelerating the integration of leading regional companies and broadening the wave of industry consolidation.
The current deal is expected to be completed through Life Corporation’s tender offer for Albis shares. The acquisition is valued at up to ¥26.3 billion and is expected to involve the purchase of shares through the tender offer.
Albis is a leading regional supermarket chain based in Hokuriku, and this is expected to be Life Corporation’s first move to bring a peer under its umbrella. Mitsubishi Corporation, a major shareholder in both companies, could influence their relationship.
The deal is also notable as Life Corporation’s first attempt to bring another company in the same industry under its umbrella. Attention will focus on how the integration of operations across the Hokuriku, Tokyo metropolitan and Kinki regions develops.