Japanese furniture and interior goods chain operator Nitori Holdings Co. said Tuesday its tender offer for home improvement retailer Shimachu Co. was successful, in a friendly takeover costing over 214 billion yen ($2.1 billion) aimed at boosting competitiveness in a shrinking domestic market.

Nitori offered a higher price than rival bidder DCM Holdings Co., which also sought to make Shimachu a wholly owned subsidiary through a separate tender offer. Shimachu initially backed DCM's bid but switched to Nitori in an about-face.

A total of 30.01 million, or 77.04 percent, of Shimachu shares were tendered during the solicitation period from Nov. 16 to Dec. 28. Nitori offered to pay 5,500 yen per share, higher than 4,200 yen proposed by DCM, which announced on Dec. 12 that its tender offer was unsuccessful.

Nitori plans to make Shimachu a wholly owned unit, spending 214 billion yen to buy all Shimachu shares except those held by Shimachu itself.

Nitori, known for its affordable furniture and household products, hopes to use Shimachu's store networks in urban areas and jointly develop a private brand.

Nitori had 640 stores including 67 overseas as of late December. Shimachu operated 60 at the end of August, selling a variety of products from home improvement and gardening items to furniture.

The coronavirus pandemic boosted Nitori's sales as people spent more on household furnishings. The company reported a 33.4 percent year-on-year jump in net profit to 76.72 billion yen in the nine months to Nov. 20.

==Kyodo

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