July 13, 2012
AEON Co., Ltd.
Mitsubishi Shokuhin Co., Ltd.
Mitsubishi Shokuhin Co., Ltd and Mitsubishi Corporation Participate in Supermarket Project Developed by Three Maxvalu Companies in China
AEON Co.,Ltd. (AEON),, Mitsubishi Shokuhin Co.,Ltd. (MS) and Mitsubishi Corporation (MC) have reached a basic agreement today allowing MS and MC to each participate in the new company established in China by three of AEON’s subsidiary companies (Maxvalu Chubu Co., Ltd, Maxvalu Tokai Co., Ltd, Maxvalu Nishinihon Co., Ltd).
With its high economic growth, consumer lifestyle in China is vastly changing, particularly in urban centers, and year after year there is a growing need for convenient supermarkets where consumers may purchase safe and secure groceries. Seeing this change as a potential engine of growth for the group, AEON has been seriously preparing to develop its supermarket business in China.
MS and MC will consider investing in these new supermarket companies (*)established in different regions in China by the three Maxvalu companies responsible for AEON Group’s supermarket business upon obtaining the necessary approvals. This alliance between AEON Group and MS and MC will join forces to develop the supermarket business in China.
(*) Maxvalu Chubu Co.,Ltd. - Suzhou, Maxvalu Tokai Co.,Ltd. - Guangzhou, Maxvalu Nishinihon Co.,Ltd – Qingdao
Under the Comprehensive Business Alliance Agreement concluded in December 2008, AEON and MC have been cooperating in a number of business areas. However this first joint venture in China under the basic agreement, has consolidated the desire of both companies to develop a successful supermarket business within the Chinese market by taking advantages of the expertise that AEON Group has accumulated in the retail business and MS's strengths in product procurement; logistics and supply-chain management;.
AEON group and MC group will continue to leverage strong partnership to accelerate the development of the supermarket business in the growing Chinese market.
1. Each company’s strategy in China
AEON has set the “shift to Asian markets” which aims for significant growth in China and the ASEAN region, as one of the Group’s key strategies in the AEON Group’s three-year Medium-term Management Plan initiated in 2011 (from 2011 to 2013). In addition to establishing general merchandise stores in the form of shopping centers (SC), AEON is planning to advance the group’s multiple businesses including supermarkets, financial services, specialty stores, etc. in the future.
MS has designated business expansion into new territories as part of its growth strategy in its three-year Midterm Corporate Strategy 2015 (from 2012 to 2015). One new area designated in this strategy is overseas expansion into China and the ASEAN region on the basis of tie-ups with client companies. By providing its expertise in the distribution process, from procurement of raw materials to distribution of final products to customers, MS will work with its client companies to achieve success in the expansion of its business overseas.
MC has designated China, India and Brazil as strategic regions, capturing fast-growing domestic demand in emerging markets to strengthen existing earning drivers and develop new business environment in the three-year Midterm Corporate Strategy 2012 (from 2010 to 2012) that designated in 2010. The Chinese internal demand will be expected long-term growth, MC will concentrate management resources and make large business in China.
2. Overview of the new companies in China
(1) AEON Maxvalu Guangzhou
Address : Guangzhou, Guangdong
Representative : Satoru Abe, Director and General Manager
Establishment : Autumn of 2012 (Plan)
Paid-in Capital : 80 million Chinese yuan
(2) AEON Maxvalu Qingdao
Address : Qingdao, Shandong
Representative : Shigeki Shimozawa, Chairman and General Manager
Establishment : By the end of fiscal 2012 (Plan)
Paid-in Capitaｌ : 80 million Chinese yuan
(3) AEON Maxvalu Suzhou
Address : Suzhou, Jiangsu
Representative : Satoshi Umemoto, Chairman
Establishment : Spring of 2013 (Plan)
Paid-in Capital : 80 million Chinese yuan
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