Japan’s retail powerhouse, Seven & i Holdings, witnessed its shares suffer a dramatic 12% drop after the founding Ito family disclosed its inability to secure the necessary financing for a planned $58 billion buyout of the company.
The decline in the morning session on Thursday erased more than $5 billion from the corporation’s market value, marking a significant setback for the family and leaving the door open for other suitors.
In a recent statement, Seven & i revealed that the Ito family had not presented a viable offer to take over the retailer, which operates the globally recognized 7-Eleven chain. The company remains focused on pursuing all avenues to maximize shareholder value, including entertaining a competing proposal from Canadian retailer Alimentation Couche-Tard.
As the Ito family concluded their pursuit with a statement from Itochu, another Japanese interest that considered participating in the buyout, the spotlight shifted to Couche-Tard. The Canadian firm has consistently expressed its interest in acquiring Seven & i, having previously placed a $47 billion bid after an initial $38.5 billion offer was declined.
Investors responded to the news by sending Seven & i shares plunging, while Itochu shares gained more than 6% in Tokyo’s early trading sessions.
Conversations with Couche-Tard remain on the table, reinforcing the potential for one of the most significant acquisitions in Japan’s retail history. A representative from Couche-Tard conveyed commitment to finding a mutually beneficial agreement with Seven & i.
This turn of events has put Couche-Tard in a favorable position as it seeks to expand its international footprint through one of Japan’s most esteemed retail brands.
Thailand’s CP All Public Company Limited (SET: CPALL) were among potential bidders that the market anticipated to join Itochu in a joint venture to buyout Seven & i. However, the company announced late yesterday that it will not pursue the deal.
