A Japanese senior finance ministry official has clarified that companies cannot use the country’s national security as a pretext to block foreign takeovers, Reuters has reported.
The statement comes amid rumours that convenience store chain 7-Eleven’s owner Seven & i Holdings is pursuing “core” classification under the Foreign Exchange and Foreign Trade Act (FEFTA) to avoid a buyout from Canada’s Alimentation Couche-Tard (ACT).
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In August 2024 the convenience retailer announced the receipt of a preliminary takeover offer from ACT and established a special committee of its board comprising only independent outside directors to review the proposal.
Seven & i, valued at $38bn, is listed as a company conducting “designated” businesses, which are important but not “core” to national security.
Core sectors include nuclear power, space and semiconductors, where foreign entities face stricter acquisition rules.
However, the unnamed official emphasised that being classified as “core” does not alter the scrutiny level during the government’s security review.
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By GlobalDataThe official also told the news agency that the process for security review remains the same for foreign bids, regardless of whether a company is deemed “core” or “non-core”.
Regarding Seven & i’s status, the company confirmed it had responded to the ministry’s survey by the 23 August deadline, clarifying its structure and operations.
The survey response was unrelated to Couche-Tard’s buyout proposal, which was made public on 19 August.
