Seven & i Holdings has abandoned its $5.8 billion management buyout plan after Itochu Corporation withdrew its support, according to a report by Yomiuri. The collapse of the deal underscores the challenges faced by the Japanese retail giant as it seeks to restructure its operations and improve profitability.
The buyout, which aimed to streamline Seven & i’s business portfolio, faced significant obstacles due to internal disagreements and Itochu’s exit. Itochu, a major trading house, had been a key partner in the deal, and its withdrawal left the plan unviable.
Seven & i, the parent company of the 7-Eleven convenience store chain, has been under pressure to enhance shareholder value amid slowing growth in its domestic market. The failure of the buyout raises concerns about the company’s ability to execute its long-term strategy in a competitive retail environment.
Analysts now expect Seven & i to explore alternative measures, such as asset sales or smaller acquisitions, to achieve its objectives.
