Japanese retailer Aeon Co and electronics component maker Kyocera Corp will link up in a bid to buy troubled retail group Daiei Inc, the Nihon Keizai Shimbun reported on Sunday. Daiei, once the largest retailer in Japan but now debt-laden in third place after an ill-fated 1980s expansion, is seeking to restructure its sprawling business with the help of the state-backed Industrial Revitalisation Corp of Japan (IRCJ).
Aeon would bring retail experience to the deal, while Kyocera has ample funds and previous experience of turning businesses around, the Nikkei said.
Daiei, whose shares closed at 192 yen on Friday, has a market value of $840 million. It's shares have halved in value in the past six months.
The supermarket operator owes nearly $10 billion to banks, having failed to recover after a previous $4 billion bail-out in 2002.
A senior official at Aeon said the company was considering inviting investment banks and investment funds to join its consortium, the Nikkei said.
Dozens of companies have already expressed an interest in taking over Daiei, which also sells clothing and household goods.
Candidates must submit their restructuring plans to IRCJ by the end of November, the Nikkei said.
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