The deal will give private equity fund KKR majority ownership of Seiyu with a 65% stake, Japanese e-commerce leader Rakuten will own 20% and Walmart will hold on to 15%, the companies said in a statement on Monday.
Rakuten and KKR said they will accelerate investment in Seiyu’s digital operations, as the pandemic drives up demand for online shopping in Japan.
“We look forward to accelerating digital transformation of Seiyu brick and mortar retail and further merging the best of offline and online retail,” Kazunori Takeda, Rakuten’s executive vice president, said in a statement.
Seiyu operates more than 300 stores throughout Japan. The deal with Rakuten and KKR is subject to regulatory approvals and is expected to close early next year.