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Japanese retail conglomerate Seven & i Holdings has been designated as “core” to the national security of Japan, Reuters has reported, citing an updated finance ministry list.
The information comes after a Japanese senior finance ministry official clarified in September 2024 that companies cannot use the country’s national security as a pretext to block foreign takeovers.
The finance ministry of Japan has updated its list, classifying Seven & i Holdings as integral to national security.
When a Japanese firm is considered “core,” foreign entities must seek a national security review for stakes of 1% or more.
For full buyouts, this review is mandatory for key companies such as Seven & i, regardless of their classification.
The official stance is that Seven & i’s classification does not alter the scrutiny level or review process for bids to acquire the company entirely.
The ministry’s classification list, updated almost annually, includes companies from sectors vital to Japan’s economy and security.
Seven & i is one of 88 new additions.
In August 2024, Seven & i Holdings, the Japan-based owner of the 7-Eleven convenience store chain, received a preliminary takeover offer from Canadian rival Alimentation Couche-Tard (ACT).
But the company rejected the $38.5bn cash bid, saying that the proposal does not align with shareholder interests and with anticipated significant antitrust hurdles in the US market.
Seven & i has engaged Nomura to advise its special committee on the potential takeover by Couche-Tard.
“Seven & i gains national security “core” designation in Japan” was originally created and published by Retail Insight Network, a GlobalData owned brand.
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