Japan’s discount home electronics retailer Yamada Denki has announced will spend 10 billion yen (US$126 million) to take a controlling stake in rival Best Denki.

Yamada Denki, which already holds a 7.5 per cent stake in Best Denki, will increase its holding to more than 50 per cent.

The move will put Yamada Denki in a leading position in Japan’s electronics market. A similar move was also made by retailer Bic Camera who acquired rival Kojima in June.

Bic Camera, which holds 15 per cent stake in Best Denki, is expected to sell its holding once Yamada Denki completes the purchase.

Yamada Denki, based in Gunma Prefecture, has 698 domestic stores and three in China since established in 1973.

Fukuoka-based Best Denki, operates 497 stores in Japan and 57 in other five countries including Malaysia, Singapore and Indonesia.

GB