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Japan's Seven & i Holdings, the parent company of 7-Eleven, has announced a major leadership change as part of a broader strategy to remain independent amid a $47 billion takeover attempt by Canadian retailer Alimentation Couche-Tard.

The company appointed Stephen Dacus, a former Walmart executive, as its new CEO. Dacus will replace Ryuichi Isaka on May 27, marking the first time Seven & i has chosen a non-Japanese leader.

The leadership transition comes after a tumultuous six months, which began when Couche-Tard made a buyout offer for Seven & i. Dacus, who speaks Japanese fluently, addressed the media, stating that while discussions with Couche-Tard will continue, significant regulatory challenges could delay or prevent the merger.

"What I do not think our shareholders would want is for us to spend two plus years in limbo just for that to be rejected by the US courts," he said.

In addition to the leadership change, Seven & i also announced a series of strategic decisions aimed at strengthening its business.

According to Reuters, the company revealed plans to sell its superstore unit to Bain Capital for 814.7 billion yen ($5.5 billion) and reduce its stake in Seven Bank below 40%.

These moves are part of a broader effort to refocus the company on its core convenience store operations.

Seven & i Plans IPO for North American Operations by 2026 Amid Restructuring

Furthermore, Seven & i plans to buy back approximately 2 trillion yen worth of shares by the end of fiscal year 2030, a strategy designed to enhance shareholder value, TheGlobeAndMail said.

The company also intends to pursue an initial public offering (IPO) of its North American convenience store operations by 2026.

Seven & i operates 13,000 7-Eleven stores across the US and Canada, and the IPO is expected to help fund share buybacks and support the company's growth strategies.

Seven & i's restructuring plans are seen as a way to counter criticism from investors who have questioned its capital allocation decisions in recent years.

Despite the leadership change and restructuring efforts, analysts remain divided on whether these moves will be enough to fend off the takeover bid. Some believe that the divestitures leave Seven & i vulnerable to further attempts by Couche-Tard to acquire the company.

Dacus, who has firsthand experience working at a 7-Eleven store as a teenager, emphasized the importance of maintaining the company's focus on food, which has become a key differentiator for 7-Eleven in Japan. "I think if we can bring that same quality of food to our stores in the US, that would be a huge and sustainable source of growth," he said.

Although the restructuring marks a significant shift for Seven & i, Dacus remains confident that the company can succeed on its own terms. However, with the ongoing takeover discussions and a potential IPO on the horizon, the future of Seven & i's independence remains uncertain.

In the meantime, Seven & i's stock price surged by 6.1% following the announcement of its share buyback plan, signaling positive market reaction to the company's new direction.

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