Japanese home improvement retailer Shimachu Co. Ltd. on Friday said it will accept a ¥214 billion buyout bid from furniture chain Nitori Holdings Co., rejecting an earlier agreed to offer from peer DCM Holdings Co. Ltd.
The switch reflects a changing investment culture in Japan, where unsolicited, hostile takeover offers were once considered taboo. Their rise comes as the government pushes for better corporate governance, putting management under pressure to improve shareholder returns, especially during buyouts.
"Initially, we thought we could get immediate synergies from the products made by DCM, which runs a similar business to us," Shimachu President Takaaki Okano told a news briefing.