Japan’s Seven & i Holdings, parent company of convenience chain 7-Eleven, has disclosed that its founding Ito family failed to obtain the necessary financing to propose a management buyout valued at $58bn.
The company issued a statement: “Seven & i Holdings (7&i) confirmed that it has learned from Junro Ito, vice-president and a representative director of 7&i, and Ito-Kogyo, that they have been unable to secure the financing required to submit a definitive proposal to acquire 7&i. As a result, there is no actionable proposal from Junro Ito and Ito-Kogyo for 7&i to consider at this time.”
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Itochu, which owns rival convenience store chain FamilyMart, has announced its withdrawal from discussions regarding its potential involvement in the buyout.
A statement from Seven & i Holdings clarified its position: “We have been earnestly considering the request from the founding family for participation as a strategic partner in their acquisition proposal of Seven & i Holdings. However, we would like to inform you that we have decided to terminate our consideration of this matter.”
This setback is believed to fuel the rival offer from Canada’s Alimentation Couche-Tard (ACT), which operates the Circle K convenience store chain, to advance its acquisition efforts for the Japanese retailer.
Seven & i Holdings stated: “7&i remains committed to exploring all opportunities to unlock value for shareholders and continues to assess a full range of strategic alternatives, including the proposal from Alimentation Couche-Tard.
“The Special Committee is engaging constructively with ACT to determine if an actionable proposal can be achieved that addresses the serious US antitrust challenges that any such transaction would face.”
Couche-Tard has reaffirmed its dedication to negotiating a transaction beneficial for both parties.
In October 2024, Couche-Tard raised its bid for Seven & i Holdings to 7tn yen ($47.2bn) or $18.19 per share, following the rejection of an initial offer of $14.86 per share.
The potential acquisition by a foreign entity has drawn attention from Japanese authorities. Japan’s Economy Minister Ryosei Akazawa has indicated that any such transaction would be scrutinised for national security implications.
Seven & i recently chose Bain Capital as the preferred bidder for several of its non-core assets, indicating ongoing strategic restructuring efforts within the company.
