By Seven & i Holdings has called off its $5.8 billion management buyout plan following the withdrawal of Itochu Corporation, a key partner in the deal. The move, reported by Yomiuri, highlights the challenges faced by the Japanese retail giant as it seeks to restructure its operations and boost profitability.
The buyout was aimed at streamlining Seven & i’s business portfolio, but disagreements among stakeholders and Itochu’s exit derailed the plan. Itochu, a major Japanese trading house, had been a critical supporter of the deal, and its departure left the buyout unfeasible.
Seven & i, the parent company of the 7-Eleven convenience store chain, has been under pressure to improve shareholder value amid sluggish growth in its domestic market. The collapse of the buyout raises concerns about the company’s ability to execute its long-term strategy in a highly competitive retail environment.
Analysts now expect Seven & i to explore alternative measures, such as asset sales or smaller acquisitions, to achieve its objectives.