Key Takeaways:

• Seven & i Holdings has appointed Stephen Dacus, a U.S. executive, as its first foreign-born CEO.
• The company is set to announce a major restructuring plan, including a $13 billion share buyback.
• These moves aim to fend off a $47 billion takeover bid from Canada's Couche-Tard.

TOKYO: Seven & i Holdings, the operator of the globally recognized 7-Eleven convenience store chain, is poised to make significant changes within its leadership and structure to navigate a looming $47 billion takeover bid from Canadian rival Alimentation Couche-Tard. The company is expected to announce Stephen Dacus as its new CEO during a forthcoming board meeting. This appointment marks a milestone as Dacus becomes the first foreign-born executive to lead the Japanese retail giant, according to Reuters.

In a bid to enhance its financial standing and stave off external acquisition, Seven & i plans to initiate a substantial restructuring strategy, which includes a share buyback totaling over 2 trillion yen (approximately $13.4 billion). Furthermore, the company intends to spin off its North American subsidiary through an initial public offering, which could generate an additional 1 trillion yen. This transition comes after mounting pressure from activist investors advocating for a separation of the company's convenience store operations to improve overall valuation, a sentiment echoed by foreign investors keen on potential changes within the organization, as reported by The New York Times.

Shares in Seven & i saw a boost following news of the restructuring, although reports suggest that resistance to the Couche-Tard acquisition continues to be a pressing concern. Dacus has previously held executive roles with major retail entities such as Walmart, bringing substantial corporate experience to the company during this pivotal transition period.

The backdrop of these developments includes a failed attempt by a consortium led by Junro Ito, heir to the founding family of Seven & i, to take the firm private, which underscores the competitive pressure that the conglomerate is currently under. The proposed deal by Couche-Tard represents the largest foreign investment attempt in a Japanese business, a sign of increasing international interest in Japan's corporate environment, as highlighted in various discussions surrounding company strategy and foreign investment.

With the board meeting anticipated to yield crucial announcements regarding the future direction of the company, Seven & i Holdings is at a critical juncture, weighing opportunities for restructuring against the disruptive forces of a major foreign acquisition.

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