The Japanese parent of 7-Eleven plans to close many of the convenience-store chain’s Canadian locations while seeking to boost earnings and fight off a takeover by Alimentation Couche-Tard.

Seven & i Holdings revealed the closure plans while releasing its latest financial report last week. On a conference call, 7-Eleven President and CEO Joe Pinto said the company will close 444 stores in North America.

In the financial report, parent Seven & i Holdings said an undisclosed number of North American 7-Eleven locations will be sold under sale-leaseback deals.

As Connect Canada CRE previously reported, Seven & i also voiced plans to change its name to 7-Eleven Corp., which will hold the convenience-store chain. A new intermediate holding company known as York Capital will own grocery stores and less profitable real estate asset, Seven & i said in a public letter.

York Capital is expected to comprise 31 companies, including 24 subsidiaries and seven “equity-method affiliates,” said Seven & i. The intermediate company will become a wholly owned subsidiary.

The restructuring process is expected to be completed in late February 2025.

The move comes after Montreal-based Couche-Tard boosted its bid for Seven & i to US$47 billion from US$39 billion.

In the first six months of 2024, Seven & i saw its profits fall 35% year-over-year, according to financial results released Thursday.

According to the Globe and Mail, the decline was worse than analysts expected and will likely renew calls for Seven & i to reconsider Couche-Tard’s takeover that had This drop, measured to the six months ending August, was worse than analysts expected, and will likely renew calls for Seven & i to reconsider Couche-Tard’s takeover bid, news of which had boosted the Japanese firm’s stock price.

The 7-Eleven chain has about 85,800 convenience stores across the globe. Couche-Tard operates approximately 16,800 convenience stores, including Circle-K, in 31 countries.

Couche-Tard’s hiked all-cash offer equates to US$18.19 per share and represents a 22% increase from the original US$14.86 per share.

Seven & i announced receipt of the revised offer after a Caisse de dépôt et placement du Québec (CDPQ) executive told Bloomberg that the pension fund manager is willing to provide financial backing to help the Canadian firm complete the acquisition.

“Couche-Tard knows that we will always accompany them in these endeavours if necessary,” Vincent Delisle, CDPQ’s head of liquid markets, told the news service.

CDPQ ranks among Couche-Tard’s largest shareholders with a 3.5% stake worth $2.4 billion, according to Bloomberg.

Seven & i had publicly questioned how Couche-Tard would finance the acquisition. The Japanese firm’s board rejected the initial bid on grounds that it “grossly” undervalued the firm.

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