7-Eleven owner considers going private to avoid foreign buyout: reports

Seven & i Holdings are trying everything in their power to fend off a takeover, but I genuinely don't understand why this is necessary. Can't they just simply reject the offer? It's not like 7-Eleven is in financial trouble and cannot survive under the current umbrella, right? Or am I missing something?

Japanese "capitalism" at its finest. Similar in a way to Japanese "democracy" with one party in control for 95% of post WW2 Japan.

@wokiko68

They are rejecting the offer. The fear is that, since they rejected it, the Canadian compnay can go for hostile takeover... basically buy out stock of 7&i and be the majority share holder.

So the logical option to avoid this, is to take the shares off the market, is a fairly common practice, despite someone shouting "japanese capitalisim" and other nonesense

where the stores are a cherished one-stop shop for everything from rice balls to concert tickets.

Please stop with the over exaggeration here! 7/11 is just one more convenience store in a glut of them here in Japan.

But Seven Eleven was a foreign ( USA ) company LOL and how did it became owned by a Japanese company in the first place?? Now this is WHAT MANY WOULD CALL WAGAMAMA, typical way of doing business with many Japanese institution, Me Me Me first.

Sounds like 7/11 needs a "white knight". How about the Japanese government buying all the stock!

Only if the stock holders agree!! and if they do it is going to cost twice as much to buy all the shares and make it private, sometime stubbornness is our worst enemy.

People whould ask why the Couche wants to buy 7 elven... they are not going to bring a new service, they are not going to be able to take the 7 eleven quaility to Canda or the US, at least not in the shor - middle term.

So why? because they want to buy it and have a foot hold in Japan and asia without the need to do the heavy lifting. Considering that the Canadians have the convininece store chain Cirkle K.

They just want to buy it because they are lazy to do the job and they see a cheap good product to buy it.

To Itohchu and Itoh family they investted a lot in this brand, finally adquiring it from the US original owners, ofcourse they will want to keep it.. As any of us will do what ever to keep your pet project that you put effort, love and money to make it growth.

The dumb idea of "japan fovernmetn to buy it"... is so dumb that i needed to make it clear that is dumb

I think a hostile take over in Imminent , No More Talking or negotiating.

Seven and i announced it was closing all 8 of its stores in Israel.

https://english.kyodonews.net/news/2024/11/b3682fe59a25-seven--i-shuts-all-8-israel-stores-amid-middle-east-tensions.html#google_vignette

Where were the stores? Ina war ravaged arreas or just "close the stores"?

Taking over his own business is a good idea. 7 Eleven is one of those firms who have been found to be paying their staff inadequate wages. Maybe a decent owner would not do that and so maintain the reputation of his or her business.

they’re almost all franchises. i knew two people, one with a 7-11 franchise and one with a family mart. they put their money into it, not like franchises in the west where it’s financed and multiple locations are required to be built.

they decide wages, not corporate. margins are very thin and franchise and operating rules are strict. both of them had to work long hours at the stores.

when you own a single location of any business, or just a couple of franchises, the owner has to earn enough to live.

when a corporation owns many stores, they don’t need to make as much from each location. certainly not enough that an owner could live on.

if you only make 50,000 yen profit per month each times 500 that’s 25,000,000 per month.

Although Seven & i Holding will work 24hr x7days to improve bottom line.

Even with a quite low Wacc, at the end of the day, the best ROE will win.

( https://finance.yahoo.com/compare/CJA1.F?comps=SVNDY )

ROA: 7,95% (Couche-Tard) x 1,73% (Seven & i Holding)

ROC: 11,73% x 2,79%

In this case Couche-Tard!

Time to buy some 7/11 stock. By the look of it, their shares are going to grow due to imminent hostile buyout.

Having worked for foreign companies Canadian corps have taken over, I don't blame them from wanting to go private. They tend to overestimate their abilities and love adding bureaucracy than centralizes power and decisions back to Canada.

Don't forget folks the owners have shares in there business, the more it's advertised, the more it's in the news, the more of a hot topic it becomes, when the buyout company puts in a bid, the share price goes up! Then the offer is rejected, then they come back with a counter, or increased offer, cynical me thinks the share price jumps up again! Possibly someone in the government has bought some cheap shares, and now it's escalating, is rubbing there hands. I predict the share prices will go up several times then eventually 7,11 will be sold.

Those wondering how 7-11 became owned by the Japanese, the Southland Corporation used to own 7-11 and they went bankrupt in the late 1980's or very early 90's. 7 and i was the franchise holder for Japan and they decided to buy 7-11 out of bankruptcy. Couche-Tard is just trying to build a world monopoly of convience stores. It would never get regulatory approval. I applaud 7 and i and their fight to keep Couche-Tard from taking over.

Looks like the Family is making a $58bn white horse bid. Most likely with Sumitomo Mitsui, Mitsubishi UFJ, and Mizuho providing funding.

I was part of one of the first US acquisitions of a Japanese company in the late 90s. It was an uphill battle back then and really only worked because the family wanted to sell to us. Coming in and trying a hostile takeover usually results in big Japanese corporations and banks working against you with a counter bid.

Bold move, I sincerely hope it works. I lived in Canada for a decade and I'd rather eat roadkill than ANYTHING served at Circle K. The quality control and management techniques of Circle K in Canada are beyond pathetic. It would absolutely be a loss for Japan's kombini industry to allow these guys a massive foothold into the country.

Japan screams open markets when America says no to US steel, yet when a foreign firm wants to take over a convenience store chain in Japan, they panic.

Japan screams open markets when America says no to US steel, yet when a foreign firm wants to take over a convenience store chain in Japan, they panic.

It is an open market, and Japanese private industries are welcome to outbid them. Which is exactly what is happening. The gov't isn't holding up the merger.

Also, the holding company isn't just 7/11. It's a bank, grocery stores, department stores. Speedway in the North America, Tower Records, Denny's Japan. It's a big conglomerate that has a plan and doesn't want some Couche-Tards (actual name of the acquiring company) messing things up.

You should see what Couche Tard "convinis" look like where it all started...

A bloody shame... None of the convenience, dismal and everything at 3 to 5 times the price for the consumer.

Keep it Japanese owned...

Maybe the consequences of collecting its branch from Israel. I hope it will be successful. Boycotting Israel should not cause a national company to fall into the hands of a foreigner. I think the people of Japan should also help it.

Looks like a good move to defend your own shares to me. The company is sitting on over a $US billion in cash, and CT wants it.

I think the board should even poison pill the company to avoid a takeover (foreign or domestic). The Stock price has recovered spectacularly from covid lows and it's a company that has a pretty decent returns (when you take into account earnings + growth potential).

I just wished I had bought some stocks in 2020.

It would go downhill fast in the hands of a foreign firm, mark my words.

They want to sell their energy at American 7/11's and elsewhere. They can shove it.

Some people commenting here opposing the takeover clearly don’t understand the mess 7 eleven is in. Individual owners of 7/11 stores are doing their best to keep the services high but that won’t last long. The company as a whole have been reporting losses for the past 2 years and as things are will collapse without warning! Sharp Inc experienced something similar a few years ago and were lucky that the TAIWANESE COMPANY bought it just in time for it to survive! If the 7/11 financial situation wasn’t this bad then in the first place there would never have been a takeover proposal being entertained.

@NCiS

"" Seven and i announced it was closing all 8 of its stores in Israel. "

There is a boycott going on in the middle east of many U.S. and European businesses and institutions because of their support for Israel, man actually closed doors and not operating because of the risks employees faced.

I remember reading a report about some Seven Eleven store that took advantage of the Panic over COVID in it's early stages and started selling face masks @ 10,000JPY / pc.

Now this is NOT a good way to serve the community!! or is it???

WoodyLeeToday 03:24 am JST

@NCiS

"" Seven and i announced it was closing all 8 of its stores in Israel. "

There is a boycott going on in the middle east of many U.S. and European businesses and institutions because of their support for Israel, man actually closed doors and not operating because of the risks employees faced.

And what does that say about the morality of those countries that the employees face risks?