Ito-Yokado to buy stake in Tenmaya

JIJI

Ito-Yokado Co. plans to acquire a 20 percent stake in smaller rival Tenmaya Store Co. as early as next month for about ¥3 billion, sources said Tuesday.

Tenmaya Store, based in the city of Okayama, and listed in the Tokyo Stock Exchange’s second section, operates in Okayama, Hiroshima and Kagawa prefectures.

Ito-Yokado, a unit of Seven & I Holdings Co., aims to expand its presence in other parts of the country as its outlets are located mainly in the Tokyo area.

Seven & I has been stepping up mergers and acquisitions ahead of the consumption tax hike next April to survive stiff retail competition. The company recently announced plans to acquire stakes in catalog retailer Nissen Holdings Co. and luxury clothing retailer Barneys Japan.