Seven & i’s North American business IPO to fund quicker growth, says CEO

People shop at a 7-Eleven convenience store. (AP Photo/Ted Shaffrey)

TOKYO — Seven & i Holdings’ planned listing of its North American operations would enable the Japanese convenience store operator to take on additional debt for more aggressive growth than currently planned, its chief executive said on Wednesday.

The listing, billed for the second half of 2026, would allow for faster store rollouts in the U.S. and additional bolt-on M&As, CEO Stephen Dacus said at a strategy briefing for analysts and media in Tokyo.

The fate of the beleaguered operator of the 7-Eleven chain rests on its ability to demonstrate it can grow independently, having successfully fended off a takeover bid from Canadian rival Alimentation Couche-Tard.

Couche-Tard withdrew its US$46 billion offer last month citing a lack of engagement from Seven & i, which precipitated a nine per cent fall in the latter’s share price that reflected investor skepticism about Seven & i’s standalone growth plans.

Regarding the withdrawal, Dacus said Couche-Tard never had an actionable plan to surmount regulatory hurdles in the U.S., adding that the fact its performance had suffered in the last year may have fed into its decision to step back from negotiations.

“I’m not surprised it ended the way it did,” Dacus said.

Couche-Tard did not immediately respond to a request for comment.

Investors have been impatient with the pace of change at Seven & i, and at the briefing analysts questioned the prospects for Seven & i’s latest plan, which centered on management processes and did not introduce new growth initiatives.

In Japan, Seven & i faces stiff competition from faster-growing rivals Family Mart and Lawson, while in the U.S., analysts and investors say lackluster profit margins belie its potential as the largest convenience store chain in the country.

Analysts also questioned whether listing the North American business would generate shareholder value but Dacus said the capacity to take on more debt would allow Seven & i to pursue more aggressive growth opportunities, without specifying specific opportunities.

For years Seven & i has been under pressure from shareholders, including a series of activist investors, to boost returns by selling off assets and focusing on its core convenience store business.

In March, it unveiled a major restructuring in which it sold off its superstore unit, announced a 2 trillion yen ($13.55 billion) share buyback through 2030 and committed to a public listing of its North American arm.

(Reporting by Anton Bridge; Editing by Christopher Cushing and Muralikumar Anantharaman)