American private equity company KKR is contemplating the divestment of its majority stake in Seiyu, a Japanese supermarket chain, as reported by Nikkei.  

The process to transfer ownership has been initiated, with leading domestic retailers Aeon, Pan Pacific International Holdings — the parent company of discount store operator Don Quijote — and Trial Holdings signalling their interest alongside unnamed investment entities. 

KKR plans to decide on the buyer by February 2025, with the deal worth hundreds of billions of dollars according to Reuters. 

Seiyu, with a network of 240 outlets across Japan, transitioned from being an arm of the global retail giant Walmart when KKR acquired a controlling interest in 2021.  

In 2023, KKR reached an agreement with Rakuten whereby a fund managed by KKR would acquire Rakuten's stake in Seiyu. As a result, KKR raised its ownership in Seiyu from 65% to 85%. 

KKR's stake now stands at 85%, with Walmart maintaining a minority share of 15%. 

Seiyu has made no specific comment.

The potential sale surfaces at a time when Japanese supermarkets are navigating a challenging landscape marked by fierce competition.  

In related industry movements, an Aeon subsidiary has recently absorbed a Kanto region-based supermarket chain to bolster its market presence. 

Seven & i Holdings, the Japanese parent of the 7-Eleven convenience store chain, is working on the sale of an intermediary holding company that manages Ito-Yokado. 

Seven & i also received a takeover offer from Canadian rival Alimentation Couche-Tard (ACT) in 2024.