Aeon is planning to convert two of its publicly listed subsidiaries into wholly owned units through share swap transactions, according to sources familiar with the matter reported by the Nikkei on Friday.
The Japanese retail conglomerate will acquire the remaining stakes in Aeon Mall and Aeon Delight—currently 58.16% and 57.41% owned respectively—leading to their delisting from the Tokyo Stock Exchange’s Prime section.
The strategic consolidation targets Aeon Mall, which operates 204 shopping centers across Japan, China, and Southeast Asia, and Aeon Delight, which provides maintenance, cleaning, and security services to these properties.
By bringing these operations fully under its corporate umbrella, Aeon seeks to streamline its mall business, which has struggled to recover its pre-pandemic profit margins. The restructuring would allow for quicker decision-making and operational improvements across the retail empire.
The move also addresses mounting investor criticism of Japan’s “parent-subsidiary listing” practices, which have declined from 417 cases in fiscal 2006 to 190 in fiscal 2023, according to Nomura Institute of Capital Markets Research.
These arrangements have faced scrutiny for potential conflicts of interest, as parent companies may prioritize their own financial performance at the expense of minority shareholders in the subsidiaries.
Industry analysts expect the consolidation to enhance Aeon’s competitive position in the retail landscape while aligning with Japan’s ongoing corporate governance reforms.
