SoftBank Group (SFTBY, Financials), the Japanese investment company known for technology holdings and its Vision Fund, is reportedly considering a stake in Seven & i Holdings, the parent of 7-Eleven.
PayPay is also looking at joining the deal, according to Bloomberg. The investment could be worth several hundred billion yen.
Seven & i may issue new shares that would be bought by SoftBank and PayPay. Sumitomo Mitsui Financial Group's credit card unit is also said to be weighing participation.
The companies are still in talks and are aiming to reach an agreement this summer. The discussions remain fluid, and there is no guarantee a deal will be completed.
For Seven & i, the investment could bring in fresh capital as the company works through strategic changes and pressure around its retail operations.
For SoftBank, the move would add another large Japanese consumer business to its portfolio.
The next thing to watch is whether the talks lead to a formal agreement and how much ownership the investors would receive.