TOKYO: Japanese retail giant Seven & i Holdings, operator of the 7-Eleven convenience store chain, has appointed its first foreign CEO as it seeks to fend off a $47 billion overseas takeover bid and revamp its business for long-term growth.
After months of turbulence, including a buyout offer from Canadian retailer Alimentation Couche-Tard (ACT), Seven & i announced a sweeping leadership and business restructuring on 27 February 2025. Stephen Dacus, the company’s lead outside director, will take over as CEO on May 27, replacing Ryuichi Isaka.
Major Restructuring Moves
As part of its strategic overhaul, Seven & i will sell its superstore unit to Bain Capital for 814.7 billion yen ($5.5 billion) and reduce its stake in Seven Bank to below 40%. Additionally, the company plans to buy back approximately 2 trillion yen worth of shares by 2030 and aims to list its North American convenience store subsidiary by the second half of 2026.
The company, which operates more than 80,000 7-Eleven stores in 20 countries, has long faced investor criticism over its capital allocation. In August, it received a $47 billion takeover bid from ACT, which was later countered by a buyout attempt led by the founding Ito family. However, the Ito family’s efforts collapsed last month after failing to secure a reported $58 billion in funding.
Dacus, a former executive at Walmart and Fast Retailing, previously led a special committee reviewing takeover bids. Paul Yonamine, another outside director, will now head the committee, which will continue talks with ACT to explore whether a potential divestiture package could satisfy regulatory concerns.
Market Reaction & Investor Concerns
Following Bloomberg’s report on the share buyback plan, Seven & i shares surged 6.1% on Thursday. Analysts believe the move is an attempt to boost market value and deter ACT’s takeover bid.
However, concerns remain over how the company will fund the buyback and dividends. “It appears they will need to rely on borrowings, though a U.S. business listing is also in the pipeline,” said Lorraine Tan, regional director at Morningstar.
Meanwhile, some analysts argue that Seven & i’s restructuring may not prevent ACT’s takeover attempt. “The divestitures leave Seven & i primarily with its convenience store operations, which is exactly what ACT wants,” noted Travis Lundy, a special situations analyst at Smartkarma.
With the North American IPO still years away, ACT may still have time to negotiate an acquisition deal, provided it can structure a suitable divestment package.
A Controversial Leadership Era Ends
Isaka, who has been with Seven & i since 1980, became president in 2016 but faced criticism from foreign investors, including ValueAct Capital, which attempted to oust him in 2023 over concerns about the company’s direction.
Under his leadership, Seven & i made a $21 billion acquisition of Marathon Petroleum’s Speedway gas stations in 2020, significantly expanding its U.S. footprint. However, some analysts argue the company overpaid for the deal while retaining low-margin businesses in Japan.
“They jumped into the global market before establishing a solid foundation,” said independent retail analyst Akihito Nakai. “In hindsight, they got the order wrong.”
Seven & i had previously outlined an independent turnaround plan to double sales to 30 trillion yen by 2030, focusing on overseas expansion and fresh-food offerings. However, if ACT secures control of Seven & i, it would mark the largest foreign takeover of a Japanese company.
Despite Japan classifying Seven & i as “core” to national security in September, the finance ministry has stated that it would not create barriers to a potential acquisition.
With leadership changes, strategic divestments, and ongoing takeover pressures, Seven & i’s future remains uncertain, as the global retail battle intensifies.–REUTERS
