Japanese electronics retailers Edion Corp and Bic Camera Inc have cancelled plans to merge in a deal that would have created a group with the size to rival industry leader Yamada Denki Co Edion and Bic Camera announced after the market close on Friday.
They decided to stop merger discussions, less than two months after unveiling plans for a capital and operational alliance that was intended to lead to a merger by 2009. The two companies said they would maintain their stakes of about 3 percent in each other while also keeping certain operational ties including mutual use of distribution networks, sharing of know-how, and some joint procurement.
The request not to seek a merger came from Bic Camera, according to a statement from the companies on Friday. The Nikkei business daily quoted a Bic Camera official as saying there was discontent among management due to reports the deal would lead to it coming under the Edion umbrella.