Japanese convenience store franchise FamilyMart has completed the merger with supermarket chain operator Uny Group Holdings.

The deal will make the combined entity the second biggest convenience store operator in terms of sales, in Japan.

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Named FamilyMart Uny Holdings, the newly formed company will focus on two businesses, namely convenience stores and supermarkets.

"The merged entity will operate approximately 17,000 convenience stores in the country."

The merger will see the majority of the 6,250 Circle K Sunkus stores, which are currently operated by Uny Group, renamed as FamilyMart.

The merged entity will operate approximately 17,000 convenience stores in the country.

The two companies expect that the merger helps them to beat competition in a saturated market that is struggling with decline in consumer spending following an increase in the national sales tax.

7-Eleven Japan is the leading convenince store operatior with 18,572 outlets while Lawson stands at third with 12,995 outlets, reported Japan Today.