MatsumotoKiyoshi Holdings has announced it is in merger talks with competitor Cocokara Fine in a move that would form Japan’s largest chain of discount pharmacies, according to a report by Reuters.
Shares in Cocokara Fine jumped 9 percent following the news of the possible merger, with the combined company set to generate annual sales of nearly $10 billion, beating industry leaders Welcia Holdings and Tsuruha Holdings.
While both companies declined to comment on specific details of the talks, it is known that Cocokara Fine had previously courted a link with drug store Sugi Holdings, however, it was turned down in favor of the offer by MatsumotoKiyoshi.
Taking to a statement, Cocokara said, “It will not be easy to overcome business challenges on our own, and therefore it is appropriate for us to merge.
“By combining with MatsumotoKiyoshi Holdings … there is a chance of creating major synergies such as improving work efficiency and developing private brand products.”