7-Eleven Store Operator Seven & i Reclassified Under Japan's Investment Rules: What Does It Mean For $39B Couche-Tard Deal?

On Friday, Japan’s Ministry of Finance released a list of 88 companies that serves as a guide for foreign investors.

The so-called “Classification List” under the Foreign Exchange and Foreign Trade Act (FEFTA) is meant to assess if companies must submit a prior notification when making inward direct investments or engaging in equivalent activities with Japanese-listed companies.

Initially released in May 2020, this update marks the sixth revision to the list. Along with other additions, the list included the much-talked-about Seven & i Holdings Co. SVNDF SVNDY.

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Earlier this month, 7-Eleven store operator Seven & i rejected a takeover offer from Alimentation Couche-Tard Inc. ANCTF, saying the deal undervalues the company.

However, the Canadian store operator Alimentation Couche-Tard remains interested in the $39 billion deal to bring the Japanese convenience store company under its roof.

The Japanese convenience store operator has received a ‘Core Business’ rating. This refers to specific industries designated from the viewpoint of national security, etc., in public notice.

The Reuters report highlighted Japan Finance Minister Shunichi Suzuki’s take, stating that the classification may not hinder the proposed $39 billion buyout.

Previously classified as non-core, with the updated classification Seven & i might be positioning itself to fend off a possible takeover attempt, the report added.

Citing a Japanese official, Reuters added that Japanese companies have traditionally been less attractive targets for M&A. However, initiatives like this are gaining positive reception, particularly as Japan seeks to boost foreign direct investment. The Couche-Tard deal would also bolster Japan’s position in the global market.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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