Seven & i Holdings (SVNDY), the Japanese retailer that operates 7-Eleven, is negotiating an investment of several hundred billion yen for a double-digit stake in Zabka Group, Poland's largest convenience-store operator. The potential transaction could help Seven & i accelerate its European expansion, where growth has remained behind its larger businesses in Japan and the US. Zabka's stock jumped 16% to a record high on Thursday, valuing the company at 32.7 billion zloty, or about $8.7 billion, while Seven & i shares gained 2.2% and ended a seven-day losing streak. Discussions are continuing, although the companies may still decide not to complete the deal.
Seven & i has faced pressure over its weak share performance after Alimentation Couche-Tard (ANCUF), the Canadian operator of Circle K convenience stores, abandoned an unsolicited takeover proposal first made in 2024. The Japanese retailer has since streamlined its operations and committed to faster growth, with plans to expand its presence from 19 countries and regions currently to 30 by 2030. Poland would become Seven & i's fourth European market after Sweden, Denmark and Norway, potentially giving the company a stronger regional platform as opportunities for further expansion in Japan remain limited. Seven & i shares are still down approximately 11% this year despite efforts to improve its core convenience-store businesses in Japan and the US.
Zabka operates nearly 13,000 stores across Poland and began expanding into Romania in 2024, while developing its retail app and strengthening its food-to-go offering. Janusz Pieta, an analyst at mBank, said support from a large international retail company could allow Zabka to pursue its European expansion earlier and on a larger scale, potentially extending its growth trajectory. A transaction may also reduce investor concerns that private-equity firm CVC Capital Partners, which owns 37.62% of Zabka, and investment manager Partners Group, which holds about 10%, could sell additional shares through the market. For Seven & i investors, establishing a larger European business could help offset weakness in the US, although its potential success may depend on adapting the company's Japanese convenience-store model to local consumer preferences, distribution networks and a market where round-the-clock convenience retail remains less established.