Japanese retail conglomerate Seven & I Holdings recently noted that it has agreed to purchase the 7-Eleven convenience store chain in Australia for A$1.71 billion ($1.1 billion), further expanding its ownership of the brand.
The Australian convenience and petrol retailer, owned by the Withers and Barlow families, kickstarted the process to sell the business - which consists of 751 stores - earlier this year.
The deal will allow Seven & i to establish "itself as the clear industry leader in the Australian convenience store market, which has significant growth potential," the Japanese company said in a statement.
It added that it saw room for further growth by actively opening new stores in most Australian states.
Southland Corp
Seven & i's corporate predecessor first licensed the 7-Eleven franchise from US-based Southland Corp in 1973.
But the Japanese conglomerate later took over the US company in 1991 and now controls more than 80,000 7-Eleven convenience stores around the globe.
Its sprawling retail empire also includes Speedway gas stations in the US and Ito-Yokado supermarkets in Japan.
The company has, however, come under pressure by analysts and investors to restructure and shed underperforming assets.
Challenges
Earlier this year, Seven & i faced down a board challenge from US-based activist fund ValueAct Capital which had urged the company to consider a spin-off of the 7-Eleven convenience store chain.
Seven & i has since taken some steps to reshape its structure.
This year it closed 14 Ito-Yokado supermarket stores in Japan, exited its apparel business, and completed a sale of its Sogo & Seibu department store unit.
Read More: 7-Eleven Owner To Sell Sogo & Seibu Unit To US Fund Fortress
News by Reuters, edited by Donna Ahern, Checkout. For more retail stories, click here. Click subscribe to sign up for the Checkout print edition.
