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Rakuten to absorb online pet supplies retail unit Amrit

Rakuten Inc. said Dec. 12 that it will execute an absorption-type merger with its wholly owned subsidiary, Amrit.DC Co. Ltd., effective April 1, 2020.

Amrit, which was established in December 2009, operates an online store selling pet supplies. The business generated ¥402 million in sales in 2018, resulting in a net income of ¥14 million.

The Japanese internet services group said the purpose of the merger is to "increase operational efficiencies and to improve the quality of its services."

Upon completion, Amrit will be dissolved. There will be no issuance of new shares and no increase in shareholders’ equity or merger payment as a result of the transaction, since Amrit is 100% owned by Rakuten.

Rakuten has undergone a series of absorption-type mergers as part of its plan to reorganize the corporate structure of its business units.

As of Dec. 12, US$1 was equivalent to ¥109.23.