Itochu, Possible Buyer For am/pm

According to Nikkei, Itochu Corp, one of the largest trading companies, started to negotiate with Rex Holdings Co., the parent company of am/pm Japan Co., about the merger of the battered convenience store operator. Lawson, the second largest operator, once reached a basic agreement with Rex Holding Co., but it turned out to be a deadlock after the US parent company of am/pm showed its firm intention of making existing stores use the am/pm trademark. Itochu, who holds a 30% stake in FamilyMart Co., the third largest convenience chain store operator, looks forward to combining the two operators.

In Japan, Seven-Eleven Japan Co. is a dominant player with about 12,000 stores. Lawson follows with 8,600 stores. FamilyMart has 7,400 while am/pm has 1,100. There are a few other players in the field. We will see industry reorganization since the domestic market is considered saturated.