Major retailer FamilyMart Uny Holdings Co. said Thursday it will make discount store operator Don Quijote Holdings Co. its affiliate, in a deeper capital tie-up amid intensifying competition in the shrinking domestic retail market.
FamilyMart Uny will acquire a stake of up to 20.17 percent in Don Quijote through a takeover bid of ¥6,600 a share from early November for a total of ¥211.9 billion ($1.89 billion), the two retailers said.
As part of the deal, FamilyMart Uny will also sell its entire stake in struggling supermarket unit Uny Co. to the discount operator, which currently owns 40 percent of shares under a capital alliance formed last year, they said.