Japan’s Yamada Holdings and Edion said they are planning a merger that could create a major consumer electronics retailer with combined sales of around US$16 billion.
Both companies said their boards will meet on Friday to review the proposal, though details of the merger terms have not been disclosed.
If completed, the deal would strengthen Yamada’s position as Japan’s largest electronics retailer, as the industry faces growing pressure from e-commerce competition and a declining population.
Following the announcement, Edion shares jumped 11%, while Yamada rose 3.5% in Tokyo morning trading.
Japanese electronics retailers are known for their large stores offering a wide range of products, including smartphones, gaming devices, home appliances, and stationery, often paired with customer reward points.
According to the Nikkei newspaper, the companies are considering establishing a holding company structure, under which both brands would operate. The move is expected to improve product offerings and strengthen their private-label businesses through greater scale.
However, the merger may face antitrust scrutiny, especially in western Japan, where both retailers have overlapping store networks.
If successful, the deal would mark the biggest restructuring in Japan’s electronics retail industry since 2012, when Yamada Denki took control of Best Denki, and Bic Camera acquired Kojima.
In the latest financial year, Yamada reported a 45% drop in net profit to 14.8 billion yen, despite sales of 1.7 trillion yen. Meanwhile, Edion posted a 9.5% rise in profit to 15.5 billion yen.
