Seven & I Gets New Designation, a Potential Buyout Hurdle

  • 7-Eleven operator has pushed back against Couche-Tard approach
  • Government category adds extra steps for any investor

Customers exit a 7-Eleven convenience store, operated by Seven & i in Kobe, Japan.

Photographer: Soichiro Koriyama/Bloomberg
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The Japanese government added Seven & i Holdings Co. to a list of “core” designated companies, a potential hurdle for Alimentation Couche-Tard Inc.’s proposal to buy out the convenience-store operator.

Last month, the Japanese retailer filed for the new designation under the Foreign Exchange and Foreign Trade Act to change its “non-core” status under the law, people with knowledge of the matter said. The new category requires any foreign entity to give prior notification of share purchases in a core company of more than 10%.