7-Eleven Owner Considers Historic $58 Billion Buyout to Go Private in Japan

Seven & i Holdings Co., the parent company of 7-Eleven, is weighing a historic $58 billion management buyout to take itself private, a move backed by banks, Itochu Corp., and the Ito family, according to insiders familiar with the talks. This massive ¥9 trillion transaction would mark Japan’s largest-ever buyout deal, offering an alternative for shareholders if Alimentation Couche-Tard Inc. — the Canadian owner of Circle K — escalates its pursuit of the Japanese retail giant.

The management buyout, still in discussion, involves ¥3 trillion in cash and equity from Itochu, the Ito family, and existing shareholders, along with ¥6 trillion in financing from Japan’s major banks, including Sumitomo Mitsui, Mitsubishi UFJ, and Mizuho. A successful buyout could shield Seven & i from foreign control and strengthen ties within Japan’s retail market, where Itochu’s FamilyMart competes directly with 7-Eleven.

In a statement, Stephen Dacus, head of a special board committee, noted that Seven & i is “objectively considering all options for realizing potential shareholder value,” including the proposals from Couche-Tard and the Ito family. The buyout would initially involve acquiring Seven & i’s entire business, with plans to eventually split the core 7-Eleven operations from other, less profitable divisions.

Taking the company private would allow Seven & i’s management more flexibility to implement bold reforms without the pressures of short-term stock performance, according to Naoki Fujiwara, a senior fund manager at Shinkin Asset Management Co. “The price is favorable, higher than market value and Couche-Tard’s offer, showing confidence in the company’s true worth,” Fujiwara noted.

Seven & i’s origins date back to 1920, when the Yokado Clothing Store was founded in Tokyo. Under the leadership of Masatoshi Ito, the company grew into a global retail powerhouse, with the 7-Eleven brand recognized worldwide.