Seven & i Holdings Co is expected to make U.S. private equity firm Bain Capital the preferred buyer for its intermediate subsidiary operating Ito-Yokado supermarket chain, a source familiar with the matter said Saturday.
The Japanese retail giant is aiming to shed its noncore operations and focus on its 7-Eleven convenience stores business, as it tries to fend off a takeover bid from Canadian convenience store operator Alimentation Couche-Tard Inc.
Seven & i is aiming to reach a final agreement with the private equity firm in March. The two other potential buyers competing for the sale of the intermediate subsidiary York Holdings Co, are Kohlberg Kravis Roberts & Co and Japan Industrial Partners, Inc.
Bain Capital is reported to have made an acquisition proposal based on a valuation of over 700 billion yen for the subsidiary, which operates 31 retailers including the Ito-Yokado business.
Seven & i has said it plans to sell a majority stake in the subsidiary by February 2026, turning it into an equity-method affiliate.
Ito-Yokado has recorded consistent losses in recent years, leading to widespread store closures and a reduced presence across the country as it faces competition from online retailers and discount stores.
York Holdings also operates the Denny's casual restaurants brand in Japan, the Loft outlet chain and children's clothing chain Akachan Honpo Co.
© KYODO
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sakurasuki
There's concern in Japan that take over will become threat for Japan national security, just remind all again that's only convenience store business.
https://www.japantimes.co.jp/business/2025/01/08/japan-flags-foreign-takeover-7eleven-security-issue/
JeffLee
Too bad its adroit management didn't think of that before. What's the point of holding on to money-losing businesses year after year, especially when you plead that you cannot "afford" to pay your workers a decent wage? No one does business like the Japanese!
Namahage
Used to love Denny's here,but last time we went,it was like a ghost ship.
Not enough staff,creaky tablet ordering,and super-slow.
Left before getting served.
Sad.
factchecker
Ok to hive off a mismanaged business unit to foreigners. Not ok to allow foreigners to take over the whole show. Pretty blatant xenophobia.
WoodyLee
Then Alimentation Couche-Tard Inc. will take over Bain Capital and go after Seven & i Holdings Co, it's only a matter of time unless Seven & i goes private there is no other ways around it.
WoodyLee
@fact...
""Pretty blatant xenophobia."'
I believe this has something to do with it, after all 7-11 was an American business and still is considering there over 12,000 stores making money in the U.S. . What a shame.
koiwaicoffee
I don't quite know Japan's private equity industry, I'm sure it's probably similar to other places. But these profit driven financial vampires squeeze and deteriorate anything they touch. They don't bring any good to other than themselves and their investors.
American PE firms are very powerful, I guess they would love to eat Japan's cake.