Japanese pharmacy chains Matsumotokiyoshi and Cocokara Fine are entering into a merger.

Under the terms of the new agreement – if approved by the boards of both sides – shares in the two firms will be transferred to a new business entity, with the transaction expected to be completed by October next year

According to a Nikkei report, the company that emerges from the new deal will lead the health and beauty market, with 3000 outlets trading at around ¥1 trillion (US$9.2 billion).

Cocokara was previously courted for a merger by Sugi Holdings, although the firm ultimately decided to partner with Matsumotokiyoshi.