KDDI has sold its bulk power supply service for condominiums to Next Power, a subsidiary of Kansai Electric, for 1.54 billion yen to focus on more profitable retail electricity services.

Target Information

KDDI Corporation, identified by the stock code 9433, has decided to divest its "au Energy Supply" service, which provides bulk power supply solutions to condominiums. This business has registered revenue of approximately 1.34 billion yen in the fiscal year ending March 2025. The primary reason for this divestiture is KDDI's assessment that this sector lacks growth potential, prompting the company to concentrate on its individual retail electricity service, "au Denki," which has more promising prospects.

The buyer for this transaction is Next Power, a subsidiary of Kansai Electric Power Company, which is located in Chuo-ku, Tokyo. The company operates a retail electricity business and will be assuming the assets of the division being sold through an absorption-type split, with the transaction scheduled for completion on March 1, 2026. The agreed sale price for this divestment is set at 1.54 billion yen.

Industry Overview in Japan

The retail electricity market in Japan has undergone significant changes since the deregulation reforms that began in 2016. These reforms have led to increased competition and diversification, enabling new players to ent