“Acquisition of Seven & i Linked to National Security, Says Japan's Economy Minister”

Investing.com -- Japan's Minister of Economy, Ryosei Akazawa, stated on Wednesday that the potential foreign acquisition of retail giant Seven & i is closely related to national security. The retail company, which owns 7-Eleven stores, recently rejected a $47 billion acquisition offer from Canadian Alimentation Couche-Tard.

The founding family of the retailer is currently in talks about privatizing the company to prevent the acquisition attempt. Speaking at a press conference organized by the Japan National Press Club, Akazawa expressed concerns regarding the potential acquisition of Seven & i. He emphasized the importance of supermarket chains and distribution networks during disaster situations, noting that they provide hot meals to affected individuals.

Akazawa voiced his worries about the potential consequences if Seven & i's grocery business were to fall under foreign control and be managed solely for profit. He mentioned that various factors, such as the ability to provide full support during disasters when local communities are in distress, need to be taken into account.

These remarks were made in response to questions about increasing global protectionism for national security reasons, as illustrated by U.S. President Joe Biden's blocking of Nippon Steel's $14.9 billion bid for U.S. Steel. In September, Seven & i was classified as a "core" asset in terms of Japan's national security, raising questions about whether this indicates a defensive strategy. At that time, the Ministry of Finance stated that this new classification would not pose an obstacle to potential acquisitions.