Japan's 7-Eleven Owner Eyes $38 Billion Buyout To Go Private

Japan's 7-Eleven convenience store chain owner, Seven & i Holdings, is reportedly considering a $58-billion management buyout to go private, according to Nikkei News.

7-Eleven's goal is to fend off a takeover bid by Canada’s Alimentation Couche-Tard.

The retail giant confirmed that it has received an offer from the founding Ito family, which has approached financial institutions to raise funds for the buyout. The goal is to fend off a takeover bid by Canada’s Alimentation Couche-Tard.

If successful, this would be the largest management buyout (MBO) in history, surpassing the $32.9 billion buyout of U.S. hospital company HCA in 2006, reported by Ritsuko Shimizu, Kane Wu, Anton Bridge, and Miho Uranaka for Reuters.

The Japanese government has expressed concerns over national security if Alimentation Couche-Tard succeeds in the takeover, given that 7-Eleven’s services include processing payments for government fees and registrations.

Additionally, 7-Eleven’s management rejected Couche-Tard’s initial offer as too low, prompting the Canadian chain to improve its bid.

Japanese banks, including Sumitomo Mitsui, Mitsubishi UFJ, and Mizuho, are reportedly in talks to provide a combined 6 trillion yen to support Seven & i’s buyout, according to Bloomberg News.