Seven & i Holdings, parent company of convenience chain 7-Eleven, has selected Bain Capital as favoured bidder for a significant portion of its non-core assets.
The decision, reported by Reuters, places Bain in a favourable position over other contenders KKR & Co and Japan Industrial Partners.
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The competition, which has been unfolding since late 2024, revolves around the acquisition of York Holdings, an entity that Seven & i intends to create.
According to reports from the Nikkei newspaper and Jiji news agency, Bain’s offer for York Holdings exceeds Y700bn ($4.7bn).
The divestiture plan by Seven & i involves consolidating its non-core businesses, including supermarkets, into York Holdings.
The new unit will encompass 31 subsidiaries, among them the group’s superstores segment, Akachan Honpo, a retailer specialising in baby goods and the operator of Denny’s restaurants in Japan.
In October 2024, Canadian firm Alimentation Couche-Tard proposed an acquisition of Seven & i Holdings at a valuation of Y7 ($47.2bn) or $18.19 per share.
This offer is a considerable escalation from its initial bid of $14.86 per share, which was turned down by Seven & i.
The company has been deemed “core” to Japan’s national security interests, necessitating a review process for foreign entities aiming to acquire stakes of 1% or more.
Seven & i reported a robust increase in total sales, achieving Y9.28tn ($62.25bn) for the first half of fiscal year 2024 (FY24), signalling strong performance in its core operations even as it seeks to streamline its portfolio through asset sales.
