7-Eleven owner announces measures to fend off takeover
Reports of the raft of measures that appeared before the retailer's announcement had caused its shares to surge as much as 10% in afternoon trade
The Japanese owner of 7-Eleven announced today (6 March) a raft of measures to fend off a takeover by a Canadian rival, including a $13.2-billion share buyback and an IPO of its US unit.
The announcements are the latest twist in a saga that began last year when 7-Eleven's parent company Seven & i Holdings Co rebuffed a takeover offer worth nearly $40 billion from Canada's Alimentation Couche-Tard (ACT).
Seven & i, which operates some 85,000 convenience stores worldwide, also named Stephen Hayes Dacus as its first foreign chief executive.
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"We're convinced that now is the time to take our initiatives to the next level, and our leadership will further pursue the improvement of shareholder values and implement transformative policies," outgoing company president Ryuichi Isaka said in a statement.
"We have decided to conduct an initial public offering (IPO) of our SEI shares that operate the North American convenience store business, 7-Eleven, on one of the major US stock exchanges by the second half of 2026," Seven & i said.
It also said it plans to buy back two trillion yen ($13.2 billion) of its own shares using funds generated by that IPO and other restructuring measures.
Reports of the raft of measures that appeared before the retailer's announcement had caused its shares to surge as much as 10% in afternoon trade.
They later trimmed those gains and were trading up 6.5% before the market close.
Seven & i was due to hold a news conference later today afternoon.
The company also announced the sale of its non-convenience-store business -- comprising supermarkets, restaurants and other assets -- to US private investment firm Bain Capital.
ACT's takeover would be the biggest foreign buyout of a Japanese firm, merging the 7-Eleven, Circle K and other franchises to create a global convenience store behemoth.
Japan's Yomiuri daily reported this week that a special committee scrutinising ACT's raised offer of reportedly around $47 billion had decided formally to say no to that, too.
While Seven & i stressed on Tuesday that all options remained on the table, its latest moves are seen as a way to boost its own valuation and avoid the need for a buyout.
7-Eleven, the world's biggest convenience store brand, began in the United States but has been wholly owned by Seven & i since 2005.
Its stores are a beloved institution in Japan, selling everything from concert tickets to pet food and fresh rice balls, although sales have been flagging.
ACT, which began with one store in Quebec in 1980, runs nearly 17,000 convenience store outlets worldwide, including Circle K.
The Nikkei said on Thursday that the IPO of 7-Eleven Inc was expected to raise more than one trillion yen ($6.7 billion), depending on business conditions.
Seven & i aims to use the US subsidiary as a springboard to expand its global convenience stores business, it said.
