Seven & i Holdings Appoints New CEO Amid $47 Billion Bid

TOKYO, Japan (Reuters) – Seven & i Holdings, the parent company of the 7-Eleven convenience store chain, announced a leadership transition and plans for significant restructuring in response to a $47 billion takeover bid from Canada’s Alimentation Couche-Tard. The company revealed that Stephen Dacus, the lead independent director, will become CEO on May 27, marking the first instance of a foreign executive heading Seven & i.

In a company filing, Seven & i stated that outgoing CEO Ryuichi Isaka would remain as a senior adviser. Dacus, who previously led a special committee evaluating the takeover bid, stepped down from that role on March 5, with fellow independent director Paul Yonamine taking over his responsibilities.

The retail giant also announced plans for a substantial share buyback program valued at approximately 2 trillion yen ($13.2 billion) and outlined intentions to list its North American subsidiary, 7-Eleven Inc., in the latter half of 2026. Seven & i confirmed that it will maintain a majority stake in the subsidiary post-public offering.

Following the announcement, shares of Seven & i rose 6.11%, reflecting investor optimism regarding the company’s strategic changes. In addition, Seven & i will divest its superstore business, which encompasses supermarkets, to investment firm Bain Capital in a deal worth 814.7 billion yen ($5.37 billion). Completion of this transaction is expected by September 2025, with buybacks commencing thereafter and projected to conclude by the fiscal year 2030.

The company also committed to a new dividend policy, stating it would endeavor to maintain or increase the per-share dividend amount over time, funded through cash flow from regular business operations.

Addressing the Couche-Tard takeover bid, Seven & i’s special committee emphasized its dedication to exploring value creation opportunities, including ongoing dialogues with ACT. However, significant U.S. antitrust challenges remain a major hurdle for the proposed deal.

To mitigate these challenges, Seven & i disclosed efforts to collaborate with Couche-Tard on a “potential divestiture package” that would ensure effective competition between ACT and any buyer of the divested stores after a potential acquisition.

The bid by Couche-Tard represents the only active takeover offer for Seven & i. Previous attempts by an Ito family-controlled group to secure financing for their proposal faltered last month, leaving Couche-Tard as the primary bidder.

Dacus, who previously held executive roles at Walmart and Fast Retailing, has been at the forefront of assessing these proposals. His experience is seen as vital for guiding Seven & i through this transformative phase.

Isaka, who joined Seven & i in 1980 and took over as president in 2016, faced criticism during his tenure from foreign investors seeking better capital allocation decisions. Last year, ValueAct Capital attempted to remove him, arguing against his strategies. The company’s management insists they can chart an independent path toward recovery, despite the ongoing pressure from potential acquirers.

Should Couche-Tard successfully acquire Seven & i, it would mark the largest foreign takeover of a Japanese company to date. The Japanese finance ministry had previously classified Seven & i as “core” to national security but indicated it would not create roadblocks for a potential takeover.

The company is set to hold a media briefing on its plans at 5 p.m. local time (0800 GMT) in Tokyo.