Seven & i Holdings Charts Strategic Course Amid Takeover Bid

Seven & i Holdings outlines a plan to divest underperforming businesses and focus on its convenience store operations amidst a $47-billion takeover bid by Alimentation Couche-Tard (ACT). The strategy involves creating a holding company for non-core assets and rebranding to '7-Eleven Corp'.

Japanese conglomerate Seven & i Holdings announced a comprehensive roadmap on Thursday aimed at divesting underperforming segments while emphasizing its pivotal convenience store operations. This move comes as a strategic response to counter a substantial $47-billion acquisition proposal from Canadian firm Alimentation Couche-Tard (ACT).

In detail, Seven & i plans to consolidate numerous non-core assets into a new holding company, York Holdings, engaging strategic investors. As part of a rebranding initiative to highlight its focus on convenience stores, the firm will rename itself '7-Eleven Corp'. The new subsidiary is expected to contain 31 entities, covering a diverse spectrum, from general merchandise to dining establishments.

The company also revised its profit forecast downward for the fiscal year ending February 2025 due to decreasing profits from its North American stores, influenced by inflationary pressures. Meanwhile, the firm remains confident that the strategic shift and enhanced capital efficiency will yield greater value than ACT's revised purchase offer.

(With inputs from agencies.)