In Tokyo, Seven & i Holdings reported a 15% decline in fourth-quarter profit, which may weaken its defense against a takeover bid by Alimentation Couche-Tard of Canada. The company, known for its 7-Eleven stores, achieved an operating profit of 105.6 billion yen ($726.4 million) in the December-February period, exceeding the average estimate of 94.5 billion yen from eight analysts. This marks the fourth consecutive quarter of profit decrease due to inflation impacting consumer spending in both Japan and North America, especially affecting its market share in Japan as customers seek cheaper alternatives.

In response to Couche-Tard's $47 billion bid, Seven has highlighted potential antitrust issues in the U.S. and believes its restructuring efforts will enhance its value independently. Following the failure of a management buyout in February, Seven & i has begun divesting non-core assets, appointed a new CEO, and announced a $2 billion share buyback plan. Additionally, it plans to list its North American convenience store subsidiary by the second half of 2026.

In a significant move, Seven & i and the operator of Circle-K stores are collaborating to sell approximately 2,000 U.S. convenience stores to facilitate regulatory approval for any merger. Interested buyers are primarily private equity firms, according to sources. Despite Seven & i's shares closing at 1,848.5 yen before the announcement, below Couche-Tard's offer of around 2,700 yen, investors remain doubtful about the bid's success.