08:25 AM EDT, 10/10/2024 (MT Newswires) -- Seven & i Holdings Co. is embarking on its biggest-ever overhaul, betting that a bold breakup will help fend off an unsolicited takeover proposal from a smaller rival and make up for a sluggish profit outlook, Bloomberg is reporting Thursday.

"We are going to speed up our transformation," Chief Executive Officer Ryuichi Isaka said in his first remarks since an buyout approach from Canada's Alimentation Couche-Tard Inc. ( ANCTF ) became public in August. Seeking to restore profitability and focus more on convenience stores, Isaka laid out a major revamp: "This plan is designed to bring out our strengths and achieve greater growth."

Bloomberg noted Seven & i essentially unveiled a plan to split in two: One business would be focused on 7-Eleven, convenience stores and gasoline stations, and the other would be a collection of 31 less profitable retail operations that might bring in strategic partners and eventually be listed separately. The big question, Bloomberg said, is if the move will be enough to win over any investors warming to Couche-Tard's approach.

The potentially problematic backdrop to potential deal negotiations is that Seven & i's core convenience store business is weakening, and it's unclear if the retailer, which will also rename itself 7-Eleven Corp. has a plan to address that, Bloomberg added.

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