(July 16): Seven & i Holdings Co is in negotiations to invest several hundred billion yen to acquire a stake in Poland’s No 1 convenience-store operator Żabka Group SA, people familiar with the matter said.
The transaction, if completed, would allow the 7-Eleven operator to accelerate expansion in Europe where growth has lagged behind its main markets in the US and Japan. The size of the stake is expected to be in the double-digits, according to the Nikkei, which first reported the news.
Zabka’s stock jumped 16% to a record high on Thursday, valuing the company at 32.7 billion zloty (US$8.7 billion or $11.2 billion). Seven & i shares closed 2.2% higher, snapping a seven-day losing streak.
Seven & i has been under pressure over its sluggish share price, which drew an unsolicited takeover bid from Canada’s Alimentation Couche-Tard Inc in 2024. Although the Circle K owner abandoned its offer, the Japanese retailer streamlined its business and promised faster growth.
With limited room to expand at home, it is accelerating overseas growth, with a goal of expanding its footprint to 30 countries and regions by 2030, from 19 now.
Discussions are ongoing and the parties may still decide against proceeding with a deal, said the people, who asked not to be identified discussing private matters.
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A Seven & i spokesperson said the company was not the source of the information. Żabka declined to comment.
Europe, in particular, is seen as a new pillar for Seven & i after Japan, the US and Australia. Poland would become the Japanese firm’s fourth European market, following Sweden, Denmark and Norway.
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7-Eleven model
Backed by its largest shareholder CVC Capital Partners, and modelled on 7-Eleven, Zabka is pushing digital strategy through its retail app while expanding its food-to-go offering. The chain runs nearly 13,000 stores across Poland. In 2024, it started expansion to Romania.
“With the backing of a large international industry player with ambitions of its own in European convenience retail, Zabka’s recently accentuated international expansion plans could be pursued sooner and at greater scale, allowing the group to grow faster and for longer,” mBank analyst Janusz Pieta said.
Incoming chief executive officer Tomasz Blicharski told Bloomberg News in May that Zabka aims to become Europe’s convenience retail leader and remains open to bringing in a new strategic investor.
Shares in Zabka are up 42% this year, twice as much as Warsaw’s WIG20 index. mBank’s Pieta said a potential transaction could ease concerns that CVC, which holds a 37.62% stake in the retailer, and Partners Group, with about 10%, may pursue further selldowns through the stock exchange.
Seven & i had traditionally relied on licensing arrangements, leaving management to local operators. Now, the company is betting that it can replicate what it has seen in Australia, where it made the local business a wholly owned subsidiary, dispatched executives and strengthened its food offerings.
Seven & i shares are down around 11% this year despite efforts to turn around its core convenience-store business in Japan and the US. The retailer is considering selling a stake to SoftBank Corp and PayPay Corp, people familiar with the negotiations have said, a move that would position the firms to capture more of consumers’ wallets and help fuel faster profit growth.
Building a business base in Europe could help offset weakness in the US, although 24-hour convenience-store operations remain less established. At the same time, gaining a meaningful foothold in such markets could help drive market expansion. The challenge will be whether Seven & i can bring the strengths of its Japanese model while adapting to local consumer habits and distribution networks.
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