The Japanese conglomerate Seven & i Holdings, owner of the well-known 7‑Eleven chain, recently reported a 15% drop in profits in the fourth quarter. This decline raises concerns about the company’s ability to withstand a potential takeover by Canadian powerhouse Alimentation Couche‑Tard. Despite achieving an operating profit of 105.6 billion yen (approximately 726.4 million USD) between December and February – a figure slightly surpassing the eight analyst estimates averaging 94.5 billion yen as compiled by LSEG – the noticeable downturn in profit indicates underlying challenges in an inflation-hit market environment.

Japanese retail giant Seven & i Holdings is poised to unveil a new quarterly report that reveals a 24% drop in profit. This decline is primarily attributed to underwhelming performance in its convenience store segment, complicating the company’s ability to counteract a potential acquisition by Canadian firm Alimentation Couche-Tard.

Alimentation Couche-Tard, the renowned Canadian retail giant owning the Circle-K chain, has recently made a public announcement in Japan regarding its intent to acquire Seven & i Holdings for $47 billion. This bold move marks a significant shift for the company known for its reticence, driven by what Couche-Tard describes as extended interference from the owner of 7-Eleven.

Seven & i Holdings, the Japanese company overseeing the 7-Eleven convenience store chain, is undergoing significant leadership changes in light of a $47 billion acquisition bid from Canadian company Alimentation Couche-Tard. This transaction could mark the largest foreign acquisition in Japanese history.