7-11 parent company's takeover battle takes a new turn, as KKR and Bain seek to acquire non-core assets.

Media reports on Wednesday cited unnamed sources revealing that investment firms, including KKR & Co. and Bain Capital LP, have made acquisition offers for non-core assets of Seven & i Holdings Co., the parent company of 7-11 convenience stores. This latest development signifies a major shift in the "acquisition battle" surrounding 7-11's parent company. Previously, a formal acquisition offer from Alimentation Couche-Tard, the parent company of OK Convenience Stores, was rejected by Seven & i. Additionally, the Ito family, founders of Seven & i and its largest shareholder, is seeking to privatize the company before the end of the fiscal year in February next year. According to sources, Bain Capital's initial bid ranges from around 750 billion yen to as high as about 1.2 trillion yen (approximately $7.6 billion). The sources also mentioned that KKR's bid is around 800 billion yen, while a Japanese merger-focused company, Japan Industrial Partners, has made a lower bid. A spokesperson for Seven & i declined to comment on the latest information provided by sources. Representatives of KKR and Bain also refrained from making any comments. Seven & i, the parent company of 7-11, set a roadmap focused on future development in October, planning to divest underperforming businesses and concentrate on the most profitable convenience store operations. The company is actively resisting a high acquisition offer of up to $47 billion from Canada's Alimentation Couche-Tard. The founding family of this retail giant in Japan is currently in negotiations to privatize Seven & i entirely through a management buyout resolution of up to 9 trillion yen (approximately $508 billion). Earlier this month, media reports, citing insider sources, suggested that the Ito family's proposal might include an IPO for its North American convenience store and gas station operations to alleviate financing and liquidity concerns. As pressure mounts from Alimentation Couche-Tard's acquisition offer, the Ito family is hastening to formalize the privatization proposal. This transaction is expected to set a record for the largest ever controlling stake acquisition in Japan, as Japanese family dynasties strive to prevent their national superstar brands from falling into the hands of foreign companies. Analyst Travis Lundy wrote in a report on Smartkarma that compared to the acquisition initiated by Alimentation Couche-Tard, the entire acquisition cycle of the privatization proposed by the Ito family could be significantly shortened. Moreover, with no other potential threats to consumer or anti-trust actions, and with the founding family having more significant say in the overall direction of the company, the acquisition initiated by Couche-Tard, as a foreign entity, may face challenges in anti-trust regulatory scrutiny and cultural integration. 7-11 is the world's largest convenience store chain brand and the core asset of Seven & i. With over 85,000 convenience store outlets in more than 20 countries and regions globally, its extensive network plays a significant role in the global retail market. The brand holds a strong market share in retail convenience stores in Japan, the US, and other regions in Asia, which is the main reason for the interest from the founding family of Seven & i Holdings and Alimentation Couche-Tard in acquiring Seven & i. Annual financial reports indicate that 7-11 has been the most significant source of profit for Seven & i Holdings for many years. While Seven & i also operates other retail businesses (such as supermarkets and restaurants), investors generally consider 7-11 to be the most valuable asset of Seven & i. If operated independently as a separate entity and listed, the total market value of 7-11 post-IPO could potentially be even higher.