"Marubeni to sell Daiei shares to AEON or Wal-Mart"

The Japanese trading house Marubeni, top shareholder of the ailing Japanese retailer Daiei, is in talks with AEON and Wal-Mart to sell a 10 to 15 per cent stake in Daiei. Japanese media report this today. Marubeni’s response is somewhat ambiguous: “If our firm believes that forming an alliance with a strategic partner is necessary to improve the value of Daiei, we will consider such a possibility”, a Marubeni statement reads. “But as of now, it is not true that our firm is in talks with specific third parties over an alliance.”

Daiei, once Japan’s leading retailer, has been under the guardianship of a government-run corporate rehabilitation body since December 2004. Marubeni has been sponsoring Daiei since a year and a half and has been purchasing Daiei shares from this government-backed body. It currently holds a 44.6 per cent stake in Daiei and appointed senior officials to form a new management team for Daiei.

According to the Japanese newspaper Nihon Keizai Shimbun, Marubeni asked both local retailer AEON and Wal-Mart to make proposals on their view on how to bring Daiei back to life again. The newspaper added that Marubeni as a tradehouse is lacking essential knowledge of the retail industry and therefore is searching for a partner to support Daiei. Selling a 10 to 15 per cent stake in Daiei is said to be part of the deal.