The founding family of Japan’s Seven & i Holdings has pulled its $58 billion management buyout bid, sending shares plummeting and offering momentum to a rival bid from Canada’s Alimentation Couche-Tard.
Seven & i, the parent company of 7-Eleven convenience stores, had received a bid from the Ito family last year but was unable to secure financing for the deal. The company has since decided to consider alternative options, including Couche-Tard’s $47 billion offer.
Couche-Tard’s bid is now looking more attractive after Seven & i rejected its initial offer of $38.5 billion. Analysts say that the failure of the Ito family’s buyout bid gives Couche-Tard a fresh opening and allows the board to consider other options without competition.
If Couche-Tard succeeds in winning control of Seven & i, it would be the largest takeover of a Japanese company. The deal has significant implications for corporate governance in Japan, which is under pressure to strengthen its regulatory framework.
Seven & i’s handling of Couche-Tard’s bid is seen as a test case for companies in Japan. Analysts say that investors may question whether Seven & i is doing enough to make the bid viable.
The Ito family had planned to take Seven & i private, but was unable to secure financing for the deal. The company has since begun considering alternative options, including selling non-core assets to private equity firm Bain Capital.
A successful takeover by Couche-Tard would be a significant milestone in Japan’s corporate landscape. However, analysts note that Japanese convenience stores operate differently from those in other countries and may not welcome a foreign owner.
Source: https://www.reuters.com/markets/deals/seven-i-scrap-58-billion-management-buyout-after-itochu-withdraws-yomiuri-says-2025-02-26