Japan flags foreign takeover of 7-Eleven owner as a national security issue

A POTENTIAL foreign acquisition of Japanese retail giant Seven & i would be “heavily related” to national security, Japan’s Economy Minister Ryosei Akazawa said on Wednesday (Jan 8).

His public comment is the first by a senior Japanese official over security issues raised by a US$47 billion buyout offer by Canada’s Alimentation Couche-Tard.

Seven & i was classified as “core” to Japan’s national security in September, raising questions as to whether it was a defensive move. The finance ministry said at the time that the classification would not create hurdles to a potential buyout.

The owner of 7-Eleven convenience stores has rejected Couche-Tard’s offer and its founding family is in talks to take the company private to fend off the takeover attempt.

“Speaking about a potential acquisition of Seven & i, I think the matter is heavily related to (national) security,” Akazawa said at the Japan National Press Club.

Akazawa said convenience stores and their distribution networks could be utilised in the event of disaster to help bring hot food to people in affected regions, for example.

“If Seven & i’s convenience store business is in foreign hands and run solely for profits, we’ll have to think about various things, such as whether we can we get full support when our people affected by the disaster are suffering,” he said.

Akazawa made the comments when asked about growing protectionism globally on national security grounds, as shown in US President Joe Biden’s decision to block Nippon Steel’s US$14.9 billion bid for US Steel.

Asked about potential Bank of Japan rate hikes, Akazawa said he wondered if current interest rate levels were normal, while stressing it was up to the BOJ to decide on monetary policy.

The central bank “may want policy leeway by having more room for a rate cut that could be conducted in case of emergencies,” he added. REUTERS