Seven & i shares rise 3,6% on reported stake talks with Poland's Zabka
Seven & i Holdings Co. shares closed 3.6% higher Friday after a Nikkei report said the 7-Eleven parent was nearing a deal to buy a stake in Polish convenience giant Zabka Group.
The potential transaction, expected to be worth several hundred billion yen, underscores Seven & i's strategy to expand its overseas convenience store business by entering the Eastern European market, the Nikkei reported.
Zabka Group, established in 1998, has more than 10,000 franchise-operated stores in Poland selling hot snacks and groceries. Shares of the retailer, listed on the Warsaw Stock Exchange, closed 10.9% higher on Thursday, to hit a record high.
Seven & i has been accelerating its global expansion with an eye toward increasing its worldwide store count, including Japan, from 87,000 to 100,000 by 2030. The company expects that the Zabka investment will significantly bolster its retail network in Europe, according to the Nikkei report.
Amir Anvarzadeh, market strategist at Asymmetric Advisors, said the market reaction reflected investor support for Seven & i's renewed investment activity after a relatively quiet period following its acquisition of Australia's 7-Eleven business.
Zabka's operating model could potentially provide Seven & i with a platform for further convenience store expansion in central Europe, Anvarzadeh said, adding that the initial stake purchase could create opportunities for closer collaboration over time.
The proposed transaction would mark the company's return to major overseas convenience store investments after a period of limited dealmaking activity.
In 2024 the Japanese giant completed its acquisition of 7-Eleven Australia to expand its presence in the country, taking full ownership of the business. The move followed its $21 billion acquisition of Speedway, a U.S. convenience store operator with locations alongside gasoline stations, in 2021.
Seven & i Holdings did not respond to CNBC's request for comment. Zabka Group said it does not comment on "any rumors" regarding potential secondary transactions involving its existing shares.
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