Aeon will acquire 35% of the shares of Jusco's five comprehensive department stores in Shenzhen for RMB94.5 million. After the acquisition, the five department stores will be fully owned by the Japanese company.
According to the report in Nanfang Daily, Aeon was listed in Hong Kong in 2004, and was then registered as Aeon (China) in Shenzhen. The China headquarters of Aeon is mainly responsible for commodity purchasing, investment, shop site selection, construction and decoration. It is also responsible for management and it is an important base for improving the overall supply abilities of the company.
Jusco is a famous brand of Aeon. After the acquisition, Jusco's five department stores in Shenzhen will be fully owned by Aeon. Originally, Aeon (Hong Kong) owned 65% of the shares of Aeon while its Chinese partners, Friendship Shenzhen and Zhongzhou Shenzhen, owned 35% of the shares of Aeon. Through this acquisition, Aeon will gain the remaining 35% of the shares and all the rights and benefits of Aeon Shenzhen.
The strategy of Aeon in China is to open new stores and it expected to open 50 stores in the first several years when it just entered China. However, the development of the company has been slow in recent years and it only opened five stores in Shenzhen. It has been six years since Aeon's entry into China, but the company has reportedly not made any profit yet.