U.S. law firm Simpson Thacher & Bartlett and Japanese Big Four firm Nishimura & Asahi have advised private equity giant KKR on its $2.55 billion exit from Japanese supermarket chain Seiyu through a sale to Trial Holdings.

The transaction will be financed through a mix of Trial's existing cash reserves and newly secured bank loans. The deal follows a competitive bidding process that reportedly included offers from Japanese retail giants Aeon and Pan Pacific International Holdings, the parent company of Don Quijote, according to Nikkei.

KKR first acquired a 65 percent stake in Seiyu from Walmart in 2021 and later expanded its holding to 85 percent in 2023. As part of the latest agreement, Walmart will also sell its remaining 15 percent stake, officially ending its involvement in Seiyu. The sale marks KKR's complete exit from its investment in the Japanese supermarket chain and underscores the growing consolidation in Japan's supermarket industry.

The Simpson Thacher team advising KKR included partners Jonathan Stradling and Noritaka Kumamoto, and associate Daisuke Ueta from the Tokyo M&A practice. Partner Makiko Harunari and registered foreign lawyer Atsushi Usui from the Hong Kong credit practice also advised on the deal.

The Nishimura & Asahi team representing KKR was led by partners Asa Shinkawa, Takahiko Date, and Daichi Iinaga, with support from Kohei Kaneko and Mari Kurosaki.