Japan - Seven & i to give up management buyout after Itochu withdraws

​Seven & i Holdings, the Japanese conglomerate known for its 7-Eleven convenience stores, has been at the center of significant acquisition discussions. In late 2024, Canada's Alimentation Couche-Tard proposed a $47 billion takeover bid, which led the founding Ito family to consider a management buyout (MBO) to retain control. The Ito family sought support from various investors, including Japanese trading house Itochu Corporation.

Initially, Itochu contemplated investing approximately 1 trillion yen ($6.69 billion) into the MBO. However, by February 2025, Itochu decided against participating, citing limited synergies between its existing food and beverage operations and Seven & i's business. Additionally, Itochu's ownership of FamilyMart, a direct competitor to 7-Eleven, posed potential conflicts. Despite Itochu's withdrawal, the Ito family continued to explore partnerships with private equity firms, such as Apollo Global Management, to pursue the buyout. ​This now appears to have been halted.

This development underscores the complexities of large-scale acquisitions in Japan, especially when balancing domestic interests with foreign investment proposals.