The acquisition war has begun! 7-11's parent company Seven & i receives a buyout proposal from the Ito family, the founders.

Japanese retail giant, Seven & i Holdings, the parent company of 7-11, announced on Wednesday that it has received a buyout proposal from a member of the Ito family, its founder. Earlier reports had suggested that the company was considering a management buyout offer valued at up to $58 billion. In a statement, the retailer stated that the buyout offer from Ito-Kogyo, associated with Vice President Junro Ito, is not binding and is currently under review by a special committee set up by Seven & i. The company added that no decision has been made on the proposal yet. Prior to this announcement, reports had indicated that the company was considering a management buyout to privatize the company at a value of up to 9 trillion yen ($58 billion), including about 6 trillion yen in financing. This would make it one of the largest management buyouts in history. Following a takeover bid from Alimentation Couche-Tard in August, Seven & i has been under pressure to provide more returns to shareholders. Sources have indicated that the buyout price for Seven & i has risen to $47 billion. Privatization would allow the Japanese company to continue operating under its current management, alleviating pressure from shareholders to sell more assets and eliminating the threat of a takeover by Couche-Tard, owner of Circle K. Quiddity Advisors analyst Travis Lundy said, "My first reaction to this news is that it sounds exploratory, but they are considering various options because if push comes to shove, the board would be more inclined to a choice that delivers more value to shareholders." Lundy added that this could also be a signal to Couche-Tard and investors that the board would be willing to agree to a buyout by a Canadian company at a similar price. Reports also indicated that Seven & i is considering a buyout with a valuation exceeding 6 trillion yen. Couche-Tard did not immediately respond to requests for comment. Whether Couche-Tard succeeds in realizing its dream of creating a global convenience store giant, or if management ultimately completes the buyout, any deal will underscore the unprecedented level of interest from foreign investors in Japanese transactions. It was reported that Japan's Mitsui Sumitomo Bank, Mitsubishi UFJ Bank, and Mizuho Bank are in talks to provide a total of 6 trillion yen in loans, with trading company Itochu Corporation possibly also participating in the buyout. Representatives from the three banks and Itochu Corporation declined to comment. For some time, Seven & i has faced pressure from foreign shareholders who have been pushing for the company to split up. The company has been trying to convince investors that it can achieve long-term growth on its own. In a restructuring plan announced last month, the company plans to spin off its supermarket business and around 30 "non-core" divisions into a holding company. Although Japanese 7-11 convenience stores have been a cash cow, the company has been weighed down by underperforming supermarket operations, including Ito-Yokado, which were a major part of the holding company it established decades ago.