TOKYO, July 31 (Reuters) - Japan's Seven & i Holdings ( SVNDF )

has formed a strategic partnership with SoftBank Corp ( SFTBF )

, PayPay ( PAYP ) and Sumitomo Mitsui Card, which will

each invest 100 billion yen ($620 million) into the 7-Eleven

operator, a filing showed on Friday.

The total 300 billion yen investment comes after the

7-Eleven operator has struggled to turn around its business,

having batted away a takeover attempt by Canadian convenience

store rival Alimentation Couche-Tard ( ANCTF ) last year.

While Seven & i ( SVNDF ) has carved out and sold off its less

profitable business lines to focus on its core convenience

stores, stiff competition in Japan and lacklustre results in

North America have weighed on its profits.

Each of Softbank, PayPay ( PAYP ) and Sumitomo Mitsui Card, the

credit card arm of Sumitomo Mitsui Financial Group ( SMFG ),

will acquire a 2.27% stake in Seven & i ( SVNDF ), the filing showed.

Also on Friday Seven & i announced a 400 billion yen share

buyback, worth over 9% of its outstanding shares.

DEAL TO BOLSTER DOMESTIC BUSINESS

LY Corp ( YAHOF ), a SoftBank subsidiary that runs the Line

messaging app along with a host of online businesses, also

signed the strategic partnership, a release from the companies

said.

They aim to integrate their customer information and create

a loyalty points ecosystem across Seven & i's ( SVNDF ) physical stores

and the other companies' online and financial customer bases,

the filing said.

The deal will bolster Seven & i's ( SVNDF ) higher-margin domestic

business, but prospects for its larger international operations

remain uncertain.

Last week Seven & i ( SVNDF ) aborted a potential stake purchase in

Polish convenience store operator Zabka that would have

expanded its presence in Europe beyond its strongholds in Japan

and the U.S.

It has failed to translate its $21 billion purchase of

Speedway petrol stations in the U.S. into higher profitability,

which has added to longstanding pressure from shareholders for

higher returns.

Since Couche-Tard pulled its 2,600 yen per share buyout

offer in July last year, Seven & i's ( SVNDF ) shares have stagnated. They

closed at 2,109 yen on Friday.

($1 = 160.3900 yen)

($1 = 159.4900 yen)