...October 11, 2024 TOKYO (S&P Global Ratings) Oct. 11, 2024--Seven & i's efforts to stave off a proposed buyout by Alimentation Couche-Tard could heap pressure on its creditworthiness. Alimentation Couche-Tard Inc. (ACT; ###+/Stable/A-2) raised its bid for Seven & i Holdings Co. Ltd. (A/Stable/--) to Ñ7 trillion from Ñ6 trillion. We believe this has prompted the Japan-based retail group to try to boost shareholder value. If it does not accept ACT's offer, Seven & i may have to demonstrate to shareholders more specific growth investments, capital efficiency improvements, and returns. This follows an announcement on Oct. 10, 2024, that it plans to reorganize group companies, including Ito-Yokado Co. Ltd., into equity-method affiliates. We will examine the financial impact of policies such as capital allocation and shareholder value initiatives following the reorganization. The company has also significantly lowered its earnings forecast for fiscal 2024 (ending Feb. 28, 2025). We believe recovery...
