7-Eleven’s Japanese owner plans to sell stake to SoftBank and PayPay, ending years of independent operation

7-Eleven’s Japanese owner Seven & i Holdings is reportedly planning to sell a stake to SoftBank and PayPay, according to Bloomberg. 

Sources revealed last week that Seven & i is considering new shares issuance totaling hundreds of billions of yen to SoftBank and PayPay. 

It was reported that such issuance would allow all three companies to benefit more from consumer spending, and spur profit growth of Seven & i’s convenience store business.

On the other hand, it marks the end of Seven & i's long-standing policy of independent operation, as the company has consistently avoided capital ties to maintain strategic flexibility. 

While Seven & i has several business partnerships, its reluctance to sell equity stakes — a bid to retain a free hand in a fast-evolving business — has kept it from achieving greater economies of scale in areas including payment infrastructure and artificial intelligence.

Ties may grow closer if the credit card arm of Sumitomo Mitsui Financial Group (SMFG) follows through on an investment plan to take an equity stake in Seven & i, along with SoftBank and PayPay, sources familiar with the matter revealed. 

SoftBank, PayPay, and SMFG are reportedly in negotiations, aiming to sign an agreement this summer. However, the negotiations remain uncertain.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓