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Japanese retail giant Seven & I plan to list 7-Eleven store operations in North America next year and begin a massive stock buyback as we face an attempt to acquire $47 billion by Canada’s Allan Station Couchtard.
The group has also appointed its first foreign chief executive and agreed to sell its non-core assets to private equity firm Bain Capital to nearly 8140 billion yen ($5.5 billion).
Stephen Dacus, lead independent director and director of the company’s special committee, responsible for evaluating the acquisition approach from Couche-Tard, will take over from CEO Isaka Ryuichi. His appointment will be subject to approval at the company’s annual shareholders meeting held on May 27th.
The first public offering for the North American convenience store business, which has 13,145 stores in the US and Canada, is expected to be released in the second half of 2026.
The company also said it would implement a massive 2TN equivalent by 2030, using IPO revenue and sales of non-core assets to Bain, including supermarkets, restaurants and specialty stores.
Dakas is expected to continue consultations with Kushi and Taad, as well as trying to support Seven and my reputation, according to those familiar with his ideas. Another independent board member is expected to take over from him as head of the special committee.
Some investors have personally questioned whether Dax, who leads negotiations with Canadian companies, represents a conflict of interest when taking over the main role.
Seven & I have consistently said that one of the major closures for dealing with Couche-Tard is an issue of the US antitrust, where the group already occupies the top two spots.
On Thursday, the company said “the parties are working to put together potential sale packages (which will be in unprecedented range and size) that could be sold to viable and trusted independent buyers, and the special committee will “continue to be constructively involved in determining whether reliable, practical remedies and divergent packages will be achieved.”
Seven & I stock jumped 10% on Thursday with a report of the expected announcement.
However, the group’s stock price has fallen 14% so far this year. Last month, after it was unable to start buyouts by the founding family, it fell sharply, putting pressure on management to show management that they had plans to improve their business.
Isaka was appointed head of Seven & I in 2016 and led the $21 billion acquisition of Speedway, a chain of US fuel and convenience stores. However, he has been criticized by some investors who wanted the company to focus more quickly on the business of its core convenience store and improve its capital allocation.
