Seven & i to Split Into Two to Fend Off Couche-Tard Takeover

  • Couche-Tard proposed to buy Japanese retailer for $47 billion
  • Retailer cuts operating profit outlook for current fiscal year
A 7-Eleven convenience store in Tokyo.Photographer: Kiyoshi Ota/Bloomberg
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Seven & i Holdings Co. is embarking on its biggest-ever overhaul, betting that a bold breakup will help fend off an unsolicited takeover proposal from a smaller rival and make up for a sluggish profit outlook.

“We are going to speed up our transformation,” Chief Executive Officer Ryuichi Isaka said in his first remarks since an buyout approach from Canada’s Alimentation Couche-Tard Inc. became public in August. Seeking to restore profitability and focus more on convenience stores, Isaka laid out a major revamp: “This plan is designed to bring out our strengths and achieve greater growth.”