U-Next Holdings (TYO:9418) said its subsidiary, U-Power, will acquire all shares of Kukoku Energy, making it a second-tier subsidiary, according to a Friday filing on the Tokyo Stock Exchange.

The acquisition is set to complete on May 1.

U-Power aims to strengthen its electricity retail business and adapt to the growing demand for renewable energy. Kukoku Energy, established in 2017, has faced financial challenges, but U-Next expects synergies through collaboration with U-Power, leading to a potential return to profitability.

The acquisition involves 1,000 shares, purchased for 1 yen. The company also plans to rename Kukoku Energy to U-Power Green Marketing.