A proposed takeover of Seven & I Holdings, which could result in the sale of one of Japan’s strongest brands, is the first major test of the country’s changing attitude to investors.
Canadian retailer Alimentation Couche-Tard’s bid to buy the operator of 7-Eleven convenience stores follows the introduction of government merger and acquisition guidelines last year, which required companies to seriously consider takeover offers. After years of activist investors pushing for change and failed attempts by foreign countries to buy big companies, the deal is being closely watched at home and abroad.
“It’s an important litmus test for Japan,” said Howard Smith, a portfolio manager at Indus Capital Partners who holds a position at Seven & I. “It will be looked at globally by investors and strategic buyers based on the attractiveness and ease of M&A in Japan.”
