Japan’s Matsumotokiyoshi and Cocokara enter merger negotiations
Cockara Fine Inc., the major drug store brand, said on Wednesday, they will join into merger talks with Matsumotokiyoshi Holdings Co., a sector player with revenues of some 1 trillion yen.
Further reorientation steps are probable to follow in the context of intensifying rivalry, critics of the sector said.
In June, Cocokara began partnership discussions with Sugi Holdings Co., which operates the drugstore chain Sugi Pharmacy. But a different commission of external corporate managers established by Cocokara endorsed a Matsumotokiyoshi inclusion proposition.
At a Board conference on Wednesday, Cocokara found that the firm would best enter Matsumotokiyoshi for its synergistic impacts on marketing and product development networks.
Cocokara will soon give Matsumotokiyoshi exclusive bargaining privileges.
While supply for medical products in Japan’s fast-greasing population is on the rise, and pharmacies face fierce price competition with supermarkets and other distributors that deal with regular necessities and processed foods.
Drug stores are also experiencing rising labour costs in the face of pharmacists ‘ shortages.
The focus is now on the reorganisation of the leading pharmaceutical companies after a sequence of purchases of lower sector colleagues, sources aware of the scenario.