(Bloomberg) — Rakuten Inc., controlled by billionaire Hiroshi Mikitani, fell the most in three months in Tokyo after the owner of Japan’s largest online mall said it’s in talks to buy U.S. web site operator Ebates Shopping.com Inc.

Rakuten is negotiating the acquisition, according to a company statement on Sept. 6. The Tokyo-based company may pay about 100 billion yen ($950 million) for Ebates and is nearing a final agreement in a deal that is expected to be announced as early as this week, a person familiar with the matter said, asking not to be named as details of the talks are private.

Rakuten shares declined 4.2 percent to close at 1,270 yen, the biggest loss since June 10 in Tokyo.

The deal follows Rakuten’s $900 million acquisition of Internet messaging and calling service Viber in March as Mikitani looks outside Japan for growth. It would give Rakuten access to Ebates services including a cash-back program for customers who shop at the U.S. company’s partner web sites, the person familiar with the negotiations said.

“It’s so hard to see the cost-effectiveness” of the deal because the company has provided few details and it’s unclear what synergies the transaction could provide, which is driving the shares down, Mitsushige Akino, executive officer at Ichiyoshi Asset Management Co. said by phone. “It’s hard to judge at this point if it’s a reasonable deal.”

San Francisco-based Ebates didn’t respond to two calls seeking comment after regular business hours.

Bond Sale

Rakuten said in June it’s open to more large-scale acquisitions after strengthening the company’s financing by issuing its first public bonds, selling 30 billion yen of three-year notes.

The company is accelerating deals inside and outside Japan and said in July it agreed to acquire an 18 percent stake in a Japanese low-cost airline venture with AirAsia Bhd. It also bought Canadian e-book company Kobo Inc. in 2012 and paid $250 million for U.S. shopping website Buy.com in 2010.

Ebates was founded in 1998. The company offers discounts and rebates for more than 1,700 online stores, including Amazon.com Inc., Macy’s Inc. and Home Depot Inc. Members get paid back a percentage of every purchase they make each quarter.

Rakuten currently has a loyalty program that lets customers earn points when they shop and use them as discounts for future purchases.

 

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