TOKYO, Dec. 13 (Kyodo) — Yamada Denki Co. said Thursday it has completed a deal to make smaller rival Best Denki Co. a subsidiary of the top home electronics retailer.
Yamada Denki, previously the second-largest shareholder in Best Denki after Bic Camera Inc., spent approximately 12.12 billion yen to raise its stake in Best Denki to 51.2 percent from around 7.5 percent through a purchase of new shares.
The Japan Fair Trade Commission approved the deal on Monday on condition that Yamada and Best Denki sell eight stores in the Kyushu region as well as in Kochi and Saitama prefectures to others by next June to secure fair competition. The acquisition plan was initially announced in July.
In announcing the completion of the acquisition by Yamada Denki, Best Denki President Koji Ono said Best Denki will dissolve its partnership with Bic Camera.
With the acquisition of Best Denki, Yamada Denki plans to beef up its network in Kyushu in southwestern Japan, a foothold of Best Denki.
At a press conference on Thursday, Yamada Denki Chairman Noboru Yamada did not refer to specific candidates of the outlet sale as required by the FTC.
Yamada said, however, that the company basically plans to keep employment of staff at the eight stores to be sold.