Japanese retailer Aeon is to acquire supermarket chain Peacock from its parent company J. Front Retailing.

The acquisition worth 30 billion yen (US$321 million) is expected to be completed by April 1.

Peacock, which operates supermarkets Daimaru Peacock and Matsusakaya Store in Tokyo and other metropolitan areas, has been struggling to make profits as a price war with rivals raged.

Aeon said the acquisition fits its strategy of further expanding in metropolitan areas.