Seven & i Holdings, a Japanese retailer that operates convenience store 7-Eleven, announced a restructuring plan centered on the convenience store business.
According to Kyodo News and the Nihon Keizai Shimbun (Nikkei) on Sunday, Seven & i Holdings plans to establish an intermediate holding company called “Yoke Holdings” to operate supermarket “Itoyokado” excluding 7-Eleven, “Seven & i Food Systems” to operate restaurant “Deniz” and general store “Loft.” Seven & i Holdings plans to reduce its investment ratio by inducing external investment in these businesses. In order to highlight convenience store businesses, the company has also decided to change its name to “Seven Eleven Corporation” after a general meeting of shareholders to be held in May next year.
Seven & i Holdings had been offered a takeover bid by ACT, a Canadian retail company that operates Circle K, a convenience store. ACT has recently raised the offer to acquire the store from 6 trillion yen to 7 trillion yen. Seven & i Holdings plans to discuss the ACT’s new proposal at a special committee to decide whether to respond or not.
The Yomiuri Shimbun said, “The sluggish supermarket business and others have continued to demand shareholders focus on convenience store businesses,” pointing out that Seven & I Holdings is trying to increase corporate value by focusing on convenience store businesses at a time when it has been offered to take over.
7-Eleven is a convenience store brand originally started in the U.S. In 1991, it acquired shares of Southland, the operator of 7-Eleven. Seven & i Holdings, a holding company, was established in 2005.
SOPHIA KIM
US ASIA JOURNAL
