A 7-Eleven convenience store storefront in Los Angeles, California on November 20, 2024.
Etienne Laurent | AFP | Getty Images
Seven & i Holdings Co., Ltd.. Shares closed 3.6% higher on Friday after the Nikkei newspaper reported that 7-Eleven’s parent company was nearing an agreement to acquire a stake in Polish convenience store giant Zabka Group.
The potential deal, expected to be worth hundreds of billions of yen, confirms Seven & i’s strategy to expand its overseas convenience store business by entering the Eastern European market, the Nikkei Shimbun reported.
Founded in 1998, Zabka Group operates more than 10,000 franchise stores selling hot snacks and food products in Poland. The company’s shares, listed on the Warsaw Stock Exchange, closed 10.9% higher on Thursday, hitting a record high.
Seven & i is accelerating its global expansion with the goal of increasing the number of stores worldwide, including Japan, from 87,000 to 100,000 by 2030. According to a report in the Nikkei Shimbun, the company expects its investment in Zabka to significantly strengthen its retail network in Europe.
Amir Anvarzadeh, market strategist at Asymmetric Advisors, said the market reaction reflected investor support for 7&i’s new investment activity after a relatively quiet period following its acquisition of Australia’s 7-Eleven business.
Anvarzadeh said Zabka’s operating model could provide Seven & i with a platform to further expand its convenience stores in Central Europe, adding that the initial share purchase could create opportunities for closer cooperation over time.
The proposed transaction would mark the company’s return to investing in major overseas convenience stores after a period of limited trading activity.
In 2024, the Japanese giant completed its acquisition of 7-Eleven Australia to expand its presence in Australia, taking full ownership of the business. The move follows the company’s $21 billion acquisition of Speedway, a U.S. convenience store operator with stores alongside gas stations, in 2021.
Seven & i Holdings did not respond to CNBC’s request for comment. Zabka Group said it would not comment on “any rumors” regarding possible secondary transactions involving existing shares.
