07:00 AM EDT, 08/27/2024 (MT Newswires) -- Seven & i Holdings Co. wants the Japanese government to require prior notification of any purchase of its shares above 10%, people familiar with the matter said, raising the hurdle for Alimentation Couche-Tard Inc.'s ( ANCTF ) buyout proposal to proceed, Bloomberg News is reporting Tuesday

The Japanese operator of 7-Eleven stores is seeking designation as a "core" company under the Foreign Exchange and Foreign Trade Act, an upgrade from its current "non-core" status under the law, said the people, asking not to be identified because the information isn't public.

Bloomberg noted Japan's Ministry of Finance would have to vet any entity seeking to acquire more than 10% of a company considered part of a core industry, which includes sectors such as aerospace, nuclear energy and rare earths. The law was designed to protect the country from security risks, such as the outflow of military technology.

The Japanese operator of 7-Eleven stores made the application after Couche-Tard approached the company last week, one of the people said. Bloomberg noted Seven & i's effort to invoke governmental oversight of Couche-Tard's proposal reflects the retailer's wariness toward the approach, which comes after years of activist investor criticism that its assets are undervalued.

It's not clear whether the ministry and other relevant government agencies will approve Seven & i's application to become a core company under the law, one person said. Under the company's current non-core category, a takeover effort would require approval only after an agreed deal.

The Finance Ministry did not immediately respond to an emailed request for comment. A representative for Seven & i referred to a prior statement, saying that no decisions have been made, and added that "a special committee of independent outside directors is currently reviewing the proposal."

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