Seven & i Holdings, the parent company of 7-Eleven, has recently been at the centre of major corporate developments. A ¥8.7 trillion ($58 billion) management buyout attempt led by the founding Ito family collapsed due to financing difficulties, causing a significant decline in the company’s share price. At the same time, Canadian convenience store giant Alimentation Couche-Tard has pursued a ¥7.1 trillion ($47 billion) acquisition bid for Seven & I after their $39 billion bid was rejected in September 2024. Despite initial resistance from Seven & i’s board and regulatory hurdles, Couche-Tard remains engaged in discussions.
Why is Seven & i open to a potential buyout?
Seven & i Holdings is exploring a potential buyout as a strategic advancement to ‘prove to investors it is more valuable as a standalone business’ especially after a disappointing 24% drop in operating profits last quarter from the same period in the previous year, falling short of analyst expectations by ¥9.6 billion.
Additionally, Seven & i is undergoing leadership changes with plans to appoint Stephen Dacus as the first foreign CEO, which is expected to drive international growth and address investor concerns about the company’s strategic direction.
Timeline of acquisition bids for Seven & i
On the 19th of August 2024, Alimentation Couche-Tard Inc. (a Canadian multinational convenience store operator) officially submitted an acquisition bid of $38 billion for Seven & I.
Shortly after on the 6th of September 2024, Seven & I’s board of directors unanimously rejected Couche-Tard’s offer, stating that it “grossly” undervalues the company.
On the 9th of October 2024, Couche-Tard proposed a revised bid of $47 billion in an effort to address valuation concerns and continue negotiations.
November 13, 2024: Junro Ito, son of Seven & i's founder, along with his private company Ito-Kogyo Co. Ltd., proposed a management buyout valued at approximately $58 billion, aiming to take the company private and counter Couche-Tard's bid.
February 26, 2025: The Ito family abandoned their $58 billion buyout attempt due to financing difficulties, leading to roughly an 11% drop in Seven & i's share price.
The Ito family had been rushing to raise financing for the buyout and communicated with big Japanese banks, international private equity groups and other global institutions, however the amount of financing they required ‘was unacceptable from a credit rating perspective, and an appropriate capital structure for the Itos’ buyout deal could not be agreed’.
What is next for Seven & i Holdings?
In response to mounting acquisition pressures from Alimentation Couche-Tard, Seven & i Holdings is accelerating its expansion into new regions, with a strategic focus on Europe. The company plans to enter 10 new countries by 2030, prioritising Europe as a key market, and is considering master franchise agreements, joint ventures, and acquisitions to establish a strong foothold in markets such as the UK, aiming to enhance shareholder value and strengthen Seven & i's position in the global convenience store market.
Currently an acquisition of Seven & I Holdings is not guaranteed, however as things stand, Alimentation Couche-Tard is in the best position to make a major move towards Seven & i. If Alimentation Couche-Tard succeeds in the $47 billion acquisition, it will make it the largest takeover of a Japanese company.
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