Japanese distribution giant Seven & i Holdings rose on the stock market on Monday, with media reporting its plan to sell several activities to concentrate on its 7-Eleven convenience stores and thus complicate a potential takeover by its Canadian rival Couche-Tard. The company, which owns 84,000 7-Eleven convenience stores in 19 countries, saw its stock jump more than 3% in morning trading on the Tokyo Stock Exchange, ending up 2.55% at 2,250 yen in mid-term trading. daytime.
Seven & i Holdings is the target of a takeover offer by the Canadian Alimentation Couche-Tard (ACT), which it had asked in early September to review its offer, judging it to be undervalued. If the operation materializes, it would give birth to a global distribution juggernaut: to the Seven & i brands would be added the 16,700 Couche-Tard stores in 31 countries, which include the Circle K brand. It would also be the most largest foreign acquisition ever made of a Japanese company, valued at around 35 billion euros. However, according to several media, the Japanese group plans to actively defend itself by selling “non-essential activities” to focus on 7-Eleven.
“Seven & i Holdings is looking for ways to boost its share price and strengthen its defenses ahead of a second takeover bid from ACT”that he “believes imminent”the Financial Times reported on Monday. According to the British daily, it plans in particular to accelerate the sale of its shares in its financial branch Seven Bank, which is also indicated by Japanese radio NHK. The group has also accelerated its plan to sell its supermarket activities, including the Japanese brand «Ito-Yokado»indicates the influential economic daily Nikkei.
Questioned by AFP, a Seven & i spokesperson declined to comment. The group’s boss is due to speak to the press on Thursday, after the publication of quarterly results. Couche-Tard, for its part, indicated that it wanted to continue its takeover attempt, and the operator of the Quebec retirement fund (CDPQ) said it was ready to financially support the operation, according to statements by one of its managers at the Bloomberg agency, reported Monday.
7-Eleven is the world’s largest convenience store chain. A quarter of them are in Japan, where these omnipresent convenience stores sell take-out meals as well as concert tickets and offer services (ATMs, bill payment, photocopier, etc.). The Japanese government classified Seven & i as a company in mid-September “essential” to the industrial sector, complicating a foreign takeover.
