Seven & i Holdings Co. is in the process of considering bids from various U.S. investment funds, which include Fortress Investment Group, and Sumitomo Corp. to purchase shares in its recently established holding company, York Holdings Co. The move to sell off a majority stake in York Holdings is strategic for Seven & i as it aims to streamline its operations and fend off a potential buyout attempt by Canadian convenience store operator Alimentation Couche-Tard Inc. The deadline for the first round of bids to acquire shares in York Holdings was set for November 28.
York Holdings Co. currently oversees approximately 30 companies, such as Ito-Yokado Co., Loft Co., and Akachan Honpo Co., which are engaged in supermarket, daily goods retail, and baby goods retail businesses respectively. By divesting its stake in York Holdings, Seven & i intends to channel its resources towards bolstering the performance of its 7-Eleven convenience store chain. The potential sale of York Holdings is seen as a preemptive measure by Seven & i to counter any advances made by Alimentation Couche-Tard Inc. for the acquisition of the 7-Eleven chain.
In the forthcoming months, Seven & i plans to conduct additional rounds of bidding for York Holdings after undertaking a due diligence process. The company aims to conclude the sale of York Holdings by February 2026. Moreover, Sumitomo Corp., through its subsidiaries like Summit Inc. and Tomod’s Co., looks to leverage the product development and procurement capabilities to boost the business performance of Ito-Yokado stores and create synergies with other companies under the York Holdings umbrella. The efforts by Sumitomo are directed towards enhancing the overall operational efficiency and profitability of the businesses within the York Holdings portfolio.