Major telecom carrier KDDI is planning to raise its stake in Lawson to 50% to jointly run the convenience chain with the aim of taking advantage of the latter¡¯s nationwide retail store network and customer base while offering technology to transform its business model, the two firms said Tuesday.
KDDI currently holds 2.1% of Lawson shares but will invest about ?500 billion ($3.4 billion) to increase its stake through a tender offer that will likely start around April and finish in September. If the deal is realized, KDDI will manage Lawson with trading house Mitsubishi Corp., which now holds 50.1% of Lawson stake, and will take the convenience chain private.
The move could benefit both firms, as KDDI ¡ª Japan¡¯s second-largest mobile carrier in terms of the number of subscribers ¡ª would be able to expand its own economic clout to attract and retain users. Lawson, which is the third-largest chain of convenience stores in terms of the number of outlets, aims to integrate KDDI¡¯s technology to improve services at its stores and tap the online shopping market.
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