Virus Crisis Prompting Industry Realignment in Japan

Economy

Tokyo, July 10 (Jiji Press)--Retailers and restaurant operators in Japan are accelerating mergers and acquisitions as they face an urgent need to strengthen earnings amid the spread of the new coronavirus.

With the coronavirus outbreak triggering changes in people’s lifestyles and consumer activities, a sense of crisis is growing among players in the retail and restaurant industries as they think they will not be able to survive with their existing business models, analysts said.

Major Japanese restaurant operator Colowide Co. <7616> said Thursday that it will launch a tender offer for Ootoya Holdings Co. <2705>, which runs restaurants offering “teishoku” set menu meals.

Although Colowide became the top shareholder of Ootoya last year, its proposals to share food procurement and distribution networks have been rejected by Ootoya. Hoping to change the situation, Colowide aims to acquire a controlling stake in Ootoya.

Both Colowide and Ootoya face tough business conditions.

[Copyright The Jiji Press, Ltd.]

Jiji Press