7-Eleven’s Owner Eyes $58B Buyout to Japanese
Seven & i Holdings, the Japanese conglomerate and owner of 7-Eleven, has received a non-binding management buyout (MBO) proposal valued at approximately ¥9 trillion ($58 billion) from Ito-Kogyo, a company linked to Vice President Junro Ito, a member of the founding family. This offer is under review by a special committee established to assess takeover bids.
Concurrently, Seven & i is engaged in preliminary discussions with Canada's Alimentation Couche-Tard, owner of Circle K, regarding a separate $47 billion takeover bid. These talks mark a shift from Seven & i's earlier reluctance to consider such proposals.
The MBO proposal aims to maintain current management and alleviate shareholder pressure to divest assets. It also seeks to counter potential hostile bids. Analysts suggest this move could prompt Couche-Tard to increase its offer.
If successful, the MBO would be the largest in history, surpassing the $32.9 billion buyout of HCA Inc. in 2006. This development highlights growing foreign interest in Japanese mergers and acquisitions, spurred by recent regulatory changes.
Seven & i has been restructuring to focus on its core 7-Eleven convenience store operations, addressing underperformance in its supermarket segments. The outcome of these bids will significantly influence the company's strategic direction and the broader landscape of Japanese corporate acquisitions.
