Japanese 7-Eleven Owner Receives Competing Offer Against Couche-Tard Bid

Japanese 7-Eleven Owner Considers Rival Buyout Proposal from Founding Family Member

The Japanese owner of 7-Eleven, Seven & i Holdings Co. Ltd., has received a new management buyout proposal from Junro Ito, a vice-president and director of the company, along with Ito-Kogyo Co. Ltd., a private firm affiliated with him. This offer presents an alternative to a takeover bid from Alimentation Couche-Tard Inc., a Quebec-based retail giant.

While the terms of the non-binding proposal by Ito were not disclosed, Seven & i’s special committee has confirmed it is reviewing the offer with its financial advisers.

Stephen Hayes Dacus, chair of the special committee and the company’s board of directors, emphasized the company’s commitment to evaluating all options, including the proposals from Ito and Couche-Tard, as well as standalone opportunities.

“The special committee and the company board will continue to engage with all parties in a manner designed to maximize value and will act in the best interests of shareholders and stakeholders,” Dacus said in a statement.

Ito has been excluded from internal discussions about both his proposal and Couche-Tard’s bid to ensure impartiality.

Last month, Couche-Tard revised its takeover offer after an earlier proposal was rejected for being undervalued and raising U.S. regulatory concerns. However, RBC Capital Markets analyst Irene Nattel suggested the latest development diminishes the likelihood of a Couche-Tard deal, citing potential competition issues in the U.S. and Japanese regulatory hesitations about foreign takeovers.

Nattel noted that a privatization led by a friendly Japanese group might better align with investor interests, avoiding the hurdles Couche-Tard could face.

Couche-Tard, which operates over 16,800 stores in 31 countries, has argued its offer provides strategic and financial benefits. A successful acquisition of Seven & i, which owns 85,800 stores worldwide and diverse assets, could significantly expand its global presence.

Seven & i also controls supermarkets, food producers, household goods retailers, and financial services, adding complexity to any potential transaction.

Both offers remain under consideration as Seven & i navigates this pivotal moment in its corporate history.