Walmart Offloads 85% Stake in Seiyu to KKR, Rakuten

Rakuten seiyu

It is below the 300 billion to 500 billion yen it reportedly sought a few years ago. But it has struggled in Japan, like other foreign entrants such as Tesco and Carrefour who were lured by the high spending power of Japanese consumers but were frustrated by tough competition. Accelerated investment in digital channels to facilitate app-based shopping, payment and delivery services;• Japanese media reported two years ago that Walmart was seeking to sell Seiyu for around 300 billion to 500 billion yen. Reporting by Chris Gallagher and Ritsuko Ando; Editing by Lincoln Feast• The Rakuten Group has over 20,000 employees, and operations in 30 countries and regions. This originally appeared on Benzinga. Last year, Walmart said it was looking to exit Japan and that it wanted to take Seiyu public but retain a majority in the business. Socially distant grocery shopping COVID-19 has transformed the humble grocery run into something of a hurdle, as masked shoppers actively try to avoid each other along narrow supermarket aisles. In Asia, it pulled out of South Korea in 2006 and shifted focus in China to expanding members-only warehouse chain Sam's Club as competition from online marketplaces such as Alibaba intensified. Under the deals, KKR will purchase a 65 percent stake in Seiyu, while a new Rakuten subsidiary will purchase a 20 percent stake. Our associates have been exceptional, adapting brilliantly to serve customers at a time when they needed it most and outperforming against an ambitious transformation plan. For a company to go public, you need to demonstrate a very attractive story to the market. Improved service experience across both online and offline channels; and• Seiyu will continue to have access to Walmart's global retail best practices. Benzinga does not provide investment advice. setAttribute 'disabled', true ; submitButton. KKR is making the investment from its Asia private equity fund. Also, in Japan, you will usually find yourself within walking distance of a convenience store or supermarket. Hiro Hirano, Co-Head of Asia Pacific Private Equity and CEO of Japan at KKR, said, "KKR is pleased to invest in the success of Seiyu given the important role it plays in the lives of customers across the country. This press release features multimedia. TSE: 4755 is a global leader in internet services that empower individuals, communities, businesses and society. The new ownership structure enables Seiyu to take advantage of KKR, Rakuten and Walmart's combined retail expertise and innovation as a standalone company. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. Price Action: Walmart shares closed nearly 1. We have been proud investors in this business over the past 18 years, and we are excited about its future under the new ownership structure. today it will sell most of its shares in Seiyu, the Japanese supermarket chain it acquired 12 years ago, to KKR and Rakuten. Adds detail on Walmart history in Japan, previous efforts to sell TOKYO, Nov 16 Reuters - U. Japanese media reported two years ago that Walmart was seeking to sell Seiyu, which operates around 330 supermarkets, for around 300 billion to 500 billion yen. The planned establishment of Rakuten DX Solution will also allow us to offer digital solutions optimized to transform retail at Seiyu and in new future partnerships with retailers across Japan. Seiyu CEO Lionel Desclee is going to continue to lead the business through a transition period after which he will take on a new role within Walmart. A new Board of Directors comprised of representatives from KKR, Rakuten and Walmart will be formed to focus decision making locally, and plans to appoint a new CEO following the close of the transaction. FILE PHOTO: The logos of Walmart and Seiyu are pictured at the headquarters office in Tokyo, Japan July 12, 2018. Last year, Seiyu had launched an ambitious strategy to accelerate growth through a more concerted focus on providing value, fresh produce, and digital convenience to customers. T in a deal valuing the supermarket chain at 172. It is well below the 300-500 billion yen it reportedly sought a few years ago. 65 billion , comes after on-off speculation about the U. Sources said at the time that it failed to find a buyer. Japan is a very convenient country — a quick stroll down any Tokyo street is enough to see that. Walmart Japan, mainly the Seiyu business, booked a net profit of 47 million yen in 2019 after reporting losses in most previous years. Last year, Seiyu launched an ambitious strategy to accelerate growth through a more concerted focus on providing value, fresh produce and digital convenience to customers. Introduction of new options for cashless payment;• For Rakuten, the deal with Seiyu helps it fight back against rival Amazon , which recently stepped up its online grocery business by tying up with supermarket chain Life Corp. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges. N and e-commerce company Rakuten 4755. But the COVID-19 pandemic prompted a rapid shift in consumer habits. Seiyu CEO Lionel Desclee will remain at the helm through the transition period, following which he is expected to take a new role at Walmart. Sources said at the time that potential buyers balked at the price. 6 billion — which includes debt. Tired of plastic-partitioned checkouts and ready to pursue alternative methods of sourcing groceries, many shoppers have turned to online supermarket services like Rakuten Seiyu Netsuper. 2 million associates worldwide. N sold most of its stake in Japan's Seiyu to investment firm KKR KKR. Founded in Tokyo in 1997 as an online marketplace, Rakuten has expanded to offer services in e-commerce, fintech, digital content and communications to approximately 1. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. About KKR: KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. And the company has already met or exceeded operational and financial goals across key areas like market share, customer satisfaction, associate engagement, and financial performance. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 65 billion including debt, comes after on-off speculation about the world's biggest retailer looking to exit Japan. The new owners are retaining a previously announced plan to relist Seiyu in the future. createElement 'span' ; spinner. The Arkansas-based retailer fully took over Seiyu in 2008, Reuters reported. In 2018, it began working with Rakuten on fresh produce delivery in Japan as well as an e-book operation in the U. 2 ;transition:background-color. And a new Board of Directors comprised of representatives from KKR, Rakuten, and Walmart will be formed to focus decision making locally and plans to appoint a new CEO following the close of the transaction. The three companies will form a new Board of Directors comprised of their representatives to focus decision making locally, and plans to appoint a new CEO following the close of the transaction. With the new pickup trial, users can order and pay for their regular groceries through Rakuten Seiyu Netsuper and have them packaged and ready to go at the counter of their nearest Seiyu supermarket. Walmart said last year, amid speculation it was seeking to exit Japan, that it aimed to list Seiyu but retain a majority stake in the business. A new CEO will then be appointed by a new board comprised of managers from the three owners. Japanese media reported two years ago that Walmart was seeking a buyer for Seiyu, and a sale could amount to around 300 billion to 500 billion yen. Sources said at the time that it failed to find a buyer. news-figure-caption-text:lang ja ,. Last year, Seiyu launched an ambitious strategy to accelerate growth through a more concerted focus on providing value, fresh produce and digital convenience to customers. The deal, which values Seiyu at 172. setAttribute 'class', 'loader' ; submitButton. A few months later, the two companies teamed up again to — this time on four wheels. Rivals to Rakuten include grocery delivery services run by Aeon in partnership with Ocado , Amazon and Ito-Yokado. 65 billion , the companies said. LATEST DIVESTITURE The Seiyu deal is the latest divestiture of underperforming assets by Walmart, following its exits in Britain and Argentina, as it struggled to compete with nimble local rivals. This investment is a true milestone for KKR in Japan and reinforces our commitment to the market as well as our continuing efforts to champion the long-term success of local businesses. giant has been reshaping its international operations to focus on high-potential markets like India and China, and investing to build its digital operations globally as it faces cost pressures and sluggish growth in its home market. Books and home appliances see about a third of sales online, he said. 6 billion and means Walmart will almost completely exit its operations in Japan. The deal values the business at 172. Seiyu CEO Lionel Desclee will continue to lead the business through a transition period, after which he will take on a new role within Walmart. For Rakuten, the deal with Seiyu helps it compete against rival Amazon. The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2021. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. After struggling with strong competition in Japan and low margins, Walmart relisting Seiyu or its holding company, Walmart Japan Holdings last year. And the transaction is subject to regulatory approvals and is expected to close in the first quarter of 2021. About Rakuten DX Solution: A new Rakuten Group subsidiary planned for establishment in January 2021 to support the digital transformation of brick-and-mortar retailers across Japan and to promote the merger of offline and online retail OMO in order to serve customers with a seamless and personalized retail experience. With a konbini on every second corner and a herd of vending machines on every other, one is rarely left wanting for food or drink. Seiyu Chief Executive Officer Lionel Desclee will stay in his role through the transaction and then take a new position within Walmart. Rakuten and Walmart already has entered into collaborations, including Rakuten Seiyu Netsuper online grocery delivery service and Rakuten Group's partnership with Walmart that includes ebook service support in the United States. Last year, Seiyu launched a strategy to accelerate growth through a more concerted focus on providing value, fresh produce and digital convenience to customers, across key areas, including market share, customer satisfaction, associate engagement and financial performance, according to the acquiring companies. Walmart first entered the Japanese market in 2002 by buying a 6 per cent stake in Seiyu, and gradually built up its stake before a full takeover in 2008. Physical stores are already conveniently located. Walmart began buying into Seiyu, which operates a nationwide supermarket chain in Japan with more than 300 retail units, in 2002 and assumed full ownership in 2008. In Asia, it pulled out of South Korea in 2006 and shifted focus in China to expanding members-only warehouse chain Sam's Club as competition from online marketplaces such as Alibaba intensified. Some analysts said Walmart, while failing to make much money in Japan, had done better than other foreign retailers considering it saved money-losing Seiyu from bankruptcy by cutting costs and improving private brand sales. KKR made the investment from its Asia private equity fund. We have been proud investors in this business over the past 18 years and we are excited about its future under the new ownership structure. 4 billion members around the world. Trending Topics• About Seiyu: Established in 1963, Seiyu is a nationwide supermarket chain in Japan with more than 300 retail units. retail giant looking to exit Japan. The three companies together expects to bring complementary strengths to build on Seiyu's momentum and support its efforts to become Japan's leading omnichannel retailer. A new board of directors — made up of representatives from KKR, Rakuten, and Walmart — will be formed and subsequently appoint a new CEO after the close of the transaction. KKR and Japan's Rakuten, Inc. Walmart first invested in Seiyu in 2002 and took it private in 2008. getElementById 'form1783' ; addChangeHandler form. Addressing reports that it was looking to leave Japan, Walmart announced last year that it aimed to list Seiyu and retain a majority stake in the business. getElementsByTagName 'input' ; addChangeHandler form. Seiyu has already met or exceeded operational and financial goals across key areas. Walmart will retain a 15 percent stake in Seiyu. Seiyu told Reuters earlier this year that the coronavirus pandemic had bolstered interest in online grocery shopping in Japan. The deal is expected to close in the first quarter of 2021, subject to regulatory approvals. The Company has already met or exceeded operational and financial goals across key areas, including market share, customer satisfaction, associate engagement and financial performance. Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. , said, "By building on our successful partnership on Rakuten Seiyu Netsuper and our deep experience in online retail and data-based marketing, we look forward to accelerating digital transformation of Seiyu brick and mortar retail and further merging the best of offline and online retail to offer Seiyu customers the best possible OMO 1 customer experience. Each week, over 265 million customers and members visit approximately 11,400 stores under 55 banners in 26 countries and eCommerce websites. This convenience could be one reason online grocery shopping has never quite taken off like it has in Europe or North America. And it gradually increased its stake in Seiyu until a full buyout in 2008. But the company, like other foreign entrants lured by the high spending power of Japanese consumers but frustrated by cut-price competition, has struggled to make money in Japan. The pandemic has boosted e-commerce in Japan, where adoption has sometimes lagged other markets, with online clothes shopping and food delivery seeing notable gains. Seiyu CEO Lionel Desclee will continue to lead the business through a transition period, after which he will take on a new role within Walmart. Trending Articles• Over the last six months, the company has been busy making online grocery shopping even safer: In May, the platform made contactless delivery standard. But Monday's announcement also comes as Seiyu is starting to show signs of improvement, with its relatively early start in e-commerce finally yielding results, helped by a 2018 partnership with Rakuten. The Seiyu deal is the latest divesture of underperforming assets by Walmart, following its exits in Britain and Argentina, as it struggled to compete with nimble local rivals. 12;text-align:center;margin:1em auto 1. But it has struggled in Japan, like other foreign entrants such as Tesco PLC and Carrefour SA who were lured by the high spending power of Japanese consumers but were frustrated by tough competition. NYSE: WMT helps people around the world save money and live better — anytime and anywhere — in retail stores, online, and through their mobile devices. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters. The new ownership structure builds on established collaborations between Rakuten and Walmart, including the Rakuten Seiyu Netsuper online grocery delivery service and ebook service support in the U. 4 billion purchase of Whole Foods Market in 2017. On the same day, KKR shares closed almost 2. getElementsByTagName 'select' ; addChangeHandler form. transporter-item:nth-child 3. Offering EDLP to our customers, Seiyu contributes to making their everyday life more convenient as a leading, innovative, local value retailer powered by Walmart, its parent company. In October 2018, Rakuten set out to change that, to launch the online supermarket. KKR will bring its deep expertise in the Japanese market to Seiyu, in addition to its decades-long track record of investing in the subsidiaries of large corporations and empowering them to unlock their potential as successful, independent companies. Through its supermarket and hypermarket formats and Rakuten Seiyu Netsuper delivery service, Seiyu offers customers a broad assortment including fresh food, general merchandise, and apparel products across Japan from Hokkaido to Kyusyu. Grocery items: the new frontier for online shopping in Japan Meanwhile, the company is also trialing a new in-store pickup service. KKR will buy 65 per cent of Seiyu and Rakuten will acquire a 20 per cent stake while Walmart will retain 15 per cent, the companies said in a joint statement on Monday.。 。 。

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