By Kosaku NariokaAeon Co. said it is considering a merger of its Japanese drugstore unit Welcia Holdings with domestic rival Tsuruha Holdings, a move that would combine two of Japan's biggest pharmacy chains in a fragmented market. Shares of Tsuruha Holdings and Welcia Holdings surged 11% and 17%, respectively, on Monday, while Aeon shares gained 2.5%. Aeon, Welcia and Tsuruha said Monday that they are considering the potential business integration, but a decision has yet to be made. If combined, Welcia and Tsuruha's annual revenue would top 2 trillion yen ($13.29 billion) and be more than twice that of the third biggest drugstore operator, MatsukiyoCocokara. Welcia expects net profit to rise 3.6% to Y28.00 billion and revenue to climb 7.5% to Y1.230 trillion for the year ending Feb. 29.

Source: Wall Street Journal February 26, 2024 07:49 UTC