Seven & i Holdings has scrapped its $5.8 billion management buyout plan after Itochu Corporation withdrew its support, according to a report by Yomiuri. The decision deals a blow to the Japanese retail giant’s efforts to restructure its operations and focus on core businesses.
The buyout, which aimed to streamline Seven & i’s portfolio and enhance profitability, faced significant hurdles due to internal disagreements and Itochu’s unexpected exit. Itochu, a major trading house, had been a crucial partner in the deal, and its withdrawal left the plan unworkable.
Seven & i, the parent company of the 7-Eleven convenience store chain, has been under pressure to deliver shareholder value amid slowing growth in its domestic market. The collapse of the buyout raises questions about the company’s ability to execute its long-term strategy in a competitive retail landscape.
Analysts suggest that Seven & i may now pursue alternative strategies, such as divesting non-core assets or focusing on smaller acquisitions.
