Seven-Eleven Japan owner Seven & i Holdings is considering issuing new shares worth several hundred billion yen to SoftBank and payments operator PayPay, Bloomberg reported, citing sources.
The move would mark a break from the retailer's longstanding avoidance of capital partnerships.
The company has traditionally steered clear of equity collaborations to retain strategic room to manoeuvre, setting it apart from competitors FamilyMart, which Itochu fully absorbed in 2020; and Lawson, taken over by Mitsubishi and KDDI in 2024.
Any share sale to PayPay and its controlling shareholder SoftBank could additionally involve the credit card division of Sumitomo Mitsui Financial Group, which sources said is holding separate discussions to acquire an equity stake within the same arrangement.
SoftBank, PayPay and Sumitomo Mitsui are working towards finalising terms this year, though those familiar with the matter noted the talks remain unsettled and a completed agreement is not guaranteed.
Seven & i turned down an unsolicited takeover bid from Alimentation Couche-Tard two years ago, and securing well-resourced partners could serve to discourage further approaches of that kind.
Separately, Seven & I CEO Steve Dacus has been reshaping the group's structure, a process that has included the sale of an underperforming retail arm, cutting the company's holding in a banking subsidiary, and preparing the company's US business for a listing.
Seven & i disclosed last week that first-quarter operating income reached Y105bn ($649.06m), a rise of 122.4% year-on-year on a like-for-like basis, with the comparison adjusted to exclude the deconsolidation of York Holdings and Seven Bank.
Net income attributable to parent company owners increased 95.3% to Y60.6bn for the three months to 31 May 2026 while earnings per share climbed 118.4% to Y26.21.
The retail arm referenced above was sold to Bain Capital last year as part of Seven & i's shift towards concentrating on its convenience store business, a move that followed the unsolicited approach from Canada's Alimentation Couche-Tard, which was later withdrawn.
A separate report indicated that York Holdings may consider acquisitions if suitable opportunities present themselves.
