Seven & i Holdings Plans Business Breakup
TOKYO — Seven & i Holdings Co. Ltd., parent company to 7-Eleven Inc., is planning a significant split to focus on its convenience business and fend off Alimentation Couche-Tard Inc.'s acquisition proposal, company leadership shared on Oct. 10.
"We are going to speed up our transformation," said CEO Ryuichi Isaka in his first public comments since news of Couche-Tard's offer became public in August.
"This plan is designed to bring out our strengths and achieve greater growth," he continued.
According to Isaka, the plan calls for Tokyo-based Seven & i to split into two businesses: one focused on 7-Eleven, other convenience stores and gas stations; and one consisting of a collection of 31 less profitable retail operations, such as the company's superstores business, Loft general goods stores, Akachan Honpo baby goods store and the operating company of Denny's restaurants in Japan.
The latter holding company, in which Seven & i will keep a minority stake, is to be named York Holdings Co. Seven & i seeks for it to become an equity method affiliate by February 2026, with an initial public offering planned for some time thereafter, reported Reuters.
"Going forward each business will follow its own growth story," Isaka said.
The CEO did not comment on Laval, Quebec-based Couche-Tard's recently revised offer, as the company previously noted ensuing negotiations would remain private.
Seven & i previously rejected Couche-Tard's nonbinding takeover proposal on Sept. 5. In a letter sent to Alain Bouchard, company founder and executive chairman of Couche-Tard's board of directors, Seven & i stated that the "opportunistically timed" offer "grossly undervalues" its standalone path and additional actionable avenues to realize and unlock shareholder value.
7-Eleven Inc. is No. 1 on the 2024 Convenience Store News Top 100 report.