Seven & i takeover bid by Canadian retailer faces Japan gov't review

The government can block the investment if it deems the acquisition would cause issues with economic security. Failure to provide notification or providing false information can result in imprisonment or fines.

With all the recent news about foreign investment dominating Japan's funeral, tourism, pachincko businesses and extracting wealth from Japanese consumers the LDP bureaucrats must have a very nebulous idea of economic security.

Convenience stores seem fairly essential like the others.

Probably some generous nudging by mega private equity helps with the negotiations.

This month, multifunction printers were added to the list of core industries critical to national security that are subject to pre-approval. According to the Nikkei, Japan is expanding the range of industries covered by the foreign exchange law, which was amended in 2020 to include the pre-approval requirement.

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https://asia.nikkei.com/Business/Business-deals/Seven-i-s-proposed-buyout-to-require-preapproval-by-Japan

7/11 and national security? That tuna mayo onigiri recipe must be that important.

I figure it must be their banking that would be the issue, no?

deanzaZZRToday  06:56 am JST

7/11 and national security? That tuna mayo onigiri recipe must be that important.

Let's read the whole article before posting something.

Numerous corporations sit under Seven & i's umbrella, with the holding company owning shares in firms in industries such as retail, real estate, finance, livestock farming, petroleum product sales and security services,

Aha,

This is a national security matter too !

Disrupting the food supply chain or starving the general public by a FOREIGN businessman is a major threat.

Reminds me of the Nippon Steel deal.

Isn't 7/11 a U.S. company to start with so what it is wrong with bringing it back home in north America ?

Let's read the whole article before posting something.

The Burgermeister apparently has no tolerance for “tuna mayo onigiri” quips.

The government can block the investment if it deems the acquisition would cause issues with economic security. Failure to provide notification or providing false information can result in imprisonment or fines.

Or more likely the usual double standards kick in. Japan can waltz in where it likes and buy up companies, but if it's the other way round, no siree bob. Foreigners don't know how to run Japanese companies!

I figure it must be their banking that would be the issue, no?

According to the Nikkei, it’s the security services.

WoodyLeeToday  07:29 am JST

Isn't 7/11 a U.S. company to start with so what it is wrong with bringing it back home in north America ?

lol, no woody.

wholly owned subsidiary of seven and i holdings of japan, since 2005. and 70% owned by ito yokado since 1991.

Foreign investment is reciprocal.

Japanese companies seek growth and invest outside Japan as the domestic market declines.

For example, Japanese ownership in Australasian FMCG companies is large.

If Japan deems a certain category to be subject to government approval then the SEC should subject Japan to a restriction on the same category of business in the US.

Even though it is a Japanese company, I wonder if U.S. authorities would have concerns given that Circle K and 7-11 would be owned by the same company.

7/11 and national security? That tuna mayo onigiri recipe must be that important.

LOL, I guess croissants and cheese must be also important to French, since the French government block a similar deal by the same company.

I wonder if they have convenience stores in Canada. 7/11 will start getting a lot of maple syrup sandwiches and rice balls.

Foreign investment is reciprocal.

No it isnt not. It is based on national interests.

And France block the same deal by the same company and US government is blocking US Steel. Every government blocks deals for various reasons . The US government would not allow Japanese company to Boeing or Intel.

Isn't 7/11 a U.S. company to start with so what it is wrong with bringing it back home in north America ?

First, the 7-11 in the US was owned by Southland Company based in Texas. It went bust. The Japanese bought it and turned the company around.

bringing it back home in north America ?

Can we bring Nissan back to Japan???

I hope this fails..

@Saine There's an office (a very busy one these days) for that.

International Trade Administration Office of Investment Security

https://www.trade.gov/about-us/office-investment-security

Considering the precipitous population decline which shows no signs of abatement, this is just prolonging the inevitable.

This is bad news. 

They will end up asking you to speak French

So, I go in for two riceballs and a can of chu-hi, and the staff will ask me to speak French?

Sure...that's gonna happen.

and certainly not to speak English when shopping there. 

Do you usually use English when shopping in 7-11 in Japan? Really?

Why are they selling if they are making money? I thought only the supermarkets weren't doing well!

@factchecker Lots of Japanese businesses are bought over by foreigner companies! Maybe you are confusing Japan with China! Off the top of my head Sharp is owned by Taiwan's Foxconn, Seiyu supermarkets are owned by Walmart, Gibraltar Life Insurance is owned by U.S. Prudential Holdings, VSN staffing company is owned by Swiss Adecco! The list goes on...

@factchecker And then just yesterday there was an article in JapanToday about Chinese buying out crematoriums...

For example, Japanese ownership in Australasian FMCG companies is large.

Not just FMCG, from Wikipedia

Toll Group operates a logistics and global freight forwarding network spanning 150 countries, with over 20,000 customers. Toll has more than 16,000 team members across 500 sites.[1]

Toll Holdings Pty Limited (also referred to as Toll Group) is an Australian registered company, 100% owned by Japan Post Co., Ltd, which is 100% owned by Japan Post Holdings Co., Ltd which is listed on the Tokyo Stock Exchange.[2]

Also the majority of Asahi beer your find in Australia are brewed locally. There is a big factory a few suburbs from my house.

As long as they don't change the name or start putting poor man's honey (maple syrup) on everything, I'm fine with this deal.

lol. Wasn’t japan upset when America started the same thing with America. Steel company? Lol

So...after screaming in the press about the legitimate and legally-required scrutiny of a Japanese firm's acquisition of a corporation, US Steel in America, suddenly the Japanese mis-apply a national security clause related to "technologies that could be diverted for military purposes" as a way of halting an acquisition...of a convenience store chain by a "foreign corporation"? LOL

Which products in convenience stores can be converted for "military purposes", pray tell? Maybe those sneaky foreigners can slip some yogurt onto the enemy's tank tracks to hinder mobility? Or perhaps the open-air stewing of day-old, sodium-bomb oden might cause tummy trouble if consumed by the unwitting opponent?!

Do as I say, never as I do. - Japan, probably

WoodyLeeToday 07:29 am JST   Isn't 7/11 a U.S. company to start with so what it is wrong with bringing it back home in north America ?

Peter NeilToday 08:17 am JSTlol, no woody.

You might want to check your facts, Peter. Operative phrase of the initial post is "to start with". And yes, Peter, 7-11 started as an American company, in 1927, becoming 7-11 in name in the US in 1946 to "reflect the new extended business hours".

It's owned by a Japanese firm now, but "to start with", as Woody rightfully stated, it, and the convenience store concept itself, started as an American creation back when Japan was still a nation in ashes post-war.

So, I go in for two riceballs and a can of chu-hi, and the staff will ask me to speak French?

The Burgermeister also has trouble with facetious quips.

Isn't 7/11 a U.S. company to start with so what it is wrong with bringing it back home in north America ?

And what it is wrong with keeping it in Japan??..

There’s nothing wrong with keeping it in Japan or another country taking it. That’s just business.