» Deal to create Asia’s No. 1 retailer meant to exploit economic growth, thwart Wal-Mart, others.

Deal to create Asia’s No. 1 retailer meant to exploit economic growth, thwart Wal-Mart, others.

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Deal to create Asia’s No. 1 retailer meant to exploit economic growth, thwart Wal-Mart, others.

Seven & I Holdings Co., the owner of 7-11 stores, said Monday it will buy the Japanese department store Millennium Retailing Inc. in a deal worth as much as $2.15 billion.

Seven & I, a holding company that also owns the Ito-Yokado supermarket chain, aims to become globally competitive through the deal, which will push it past Aeon Co. and make it Asia’s biggest retailer by sales.

The company, which also has U.S.-based 7-Eleven Inc. under its umbrella, aims to jump-start its growth with department stores that have been benefiting from improvement in Japan’s economy, while the outlook for general merchandise and convenience stores remains gloomy due to market saturation.

Seven & I’s move also coincides with foreign rivals’ attempts to gain further footholds in Japan’s already crowded retail sector.

Competition in the industry intensified this month when Wal-Mart Stores Inc. (Research), the world’s largest retailer, took a controlling stake in Seiyu Ltd., the country’s No. 4 supermarket chain.

More: money.cnn.com

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