Seven & i Holdings Receives Bids for Subsidiary Stake
Seven & i Holdings Co. has received several bids to acquire stock in a subsidiary it plans to sell. This move is part of the company's strategy to focus on its core business and thwart a potential buyout by a Canadian company.
Several U.S. investment funds, including Fortress Investment Group, and major trading company Sumitomo Corp. have submitted bids in the first round to buy shares in York Holdings Co. York Holdings is an intermediate holding company established in October 2023 and oversees approximately 30 companies, including supermarket operator Ito-Yokado Co., daily goods retailer Loft Co., and baby goods retailer Akachan Honpo Co.
The deadline for the first round of bids was November 28th, 2023. Seven & i plans to eventually sell off a majority stake in York Holdings, allowing the company to concentrate its resources on the 7-Eleven convenience store chain.
This decision comes amidst interest from major Canadian convenience store operator Alimentation Couche-Tard Inc. to acquire the 7-Eleven chain. Seven & i plans to conduct due diligence and hold a second round of bidding before the end of the year, aiming to complete the sell-off of York Holdings by February 2026.
Sumitomo Corp., one of the bidders, has expressed its intention to leverage the product development and procurement capabilities of its subsidiaries, such as supermarket chain Summit Inc. and drugstore chain Tomod's Co., to improve the business performance of Ito-Yokado stores and seek synergy with other York Holdings companies.