Wal-Mart buys rest of Seiyu
TOKYO Wal-Mart Stores is reportedly buying the rest of Seiyu, the Japanese retail chain. The move was approved by Seiyu shareholders earlier today, giving Wal-Mart permission to purchase the remaining 4% of the company.
On Dec. 5, Wal-Mart completed its tender offer for the outstanding shares of Seiyu complete, giving it ownership of 95.1% of the company. That prospect discouraged analysts last fall when the plan was announced because the additional investments in Japan were seen as running counter to Wal-Mart's often stated commitment to focus on improving returns. Wal-Mart contends it has to have a presence in Japan because it is the world's second largest economy and by acquiring full control of Seiyu it will be able to accelerate measures that will drive improved performance.
Seiyu reported a net loss of $216 million for the month of February.