After receiving a takeover proposal from Alimentation Couche-Tard of Canada last year, the founding Ito family of Seven & i initiated talks to privatize the company, with a valuation nearing $58 billion.
Itochu was reportedly evaluating the potential of investing 1 trillion yen (approximately $6.69 billion) in this deal. However, the trading company assessed that the synergy between its existing food and beverage operations and Seven & i’s varied business lines was insufficient, leading to a decision against participation.
Market analysts had previously viewed Itochu’s role in the buyout as complex given its ownership of FamilyMart, a competitor in the convenience store sector.
The Ito family has been reaching out to private equity firms to support their bid, indicating that the management buyout could potentially be the most substantial in its category historically.
Sources indicate that Apollo Global Management is contemplating a significant investment, possibly up to 1.5 trillion yen, to facilitate this buyout effort. This shows the global interest and potential impact on the retail landscape.
Itochu’s decision highlights the complexities of achieving strategic alignment in large-scale buyouts, particularly in competitive industries like convenience retailing.
