TOKYO (AFP) – Japan will look at the “economic security” aspects of any foreign acquisition of 7-Eleven, a government minister said as Canada’s Couche-Tard pursues a takeover of the world’s largest convenience chain.
Alimentation Couche-Tard, which owns the Circle K brand, wants to buy the store owner’s parent Seven & i but the Japanese firm last year rejected an initial offer worth nearly USD40 billion from Couche-Tard.
That led the Canadian company to make a revised bid reportedly 20 per cent higher.
“Economic security is a new area… but, for example, I think the acquisition of 7-Eleven is majorly related,” Japan’s Minister for Economic Revitalisation Ryosei Akazawa said on Wednesday.
Akazawa highlighted the role Japan’s convenience stores can play in times of crisis, such as after major earthquakes and other disasters, particularly in remote regions.
“If, for example, 7-Eleven becomes completely owned with foreign capital, to pursue profitability as its first priority, would it really offer full cooperation when a disaster occurs?” he asked reporters.
His comments came after United States (US) President Joe Biden last Friday blocked Nippon Steel’s USD14.9 billion takeover of US Steel, citing national security concerns.
The move drew harsh criticism from the Japanese government and businesses, which in 2023 invested almost USD800 billion into the US. In September, the Japanese Finance Ministry designated Seven & i as a “core” industry in terms of national security.
Other entities rated the same in Japan include manufacturers in the nuclear, rare earths, and chip industries, as well as cybersecurity and infrastructure operators.
Seven & i, however, said at the time that the rating “has nothing to do with the takeover offer” from Couche-Tard.
