THE WEEK



 

Convenience stores aren't just big business in Japan: They're a linchpin of the nation's culture — with reputations for tasty, well-prepared food and an astoundingly wide array of critical services — known as "konbini." Now a takeover bid could change everything.

7-Eleven stores are a "cornerstone of Japanese society," said The New York Times. Yes, the chain started in Texas, but it quickly became a huge success after opening its first Japanese store in 1974 — and has been a wholly-owned Japanese company since 2005.

Now the Canadian firm Alimentation Couche-Tard (ACT) — which operates the Circle K chain — has offered an "unsolicited bid" to buy the company, raising alarms among the Japanese public: The sale would be the "equivalent to Toyota becoming a foreign company," said one analyst.

The proposal "marks a watershed even if it falls through," said The Economist. Japanese companies have traditionally had "hostile attitudes towards mergers and acquisitions," but in recent years government reforms have tried to make businesses "more shareholder-friendly" — with a particular focus on maximizing profit. ACT tried two decades ago to purchase 7-Eleven's American operations, but was rebuffed.

That makes the new bid a test of the country's evolving business culture. "The fact that his latest offer is receiving serious consideration is a sign of how much has changed," said The Economist. 


The 'indispensable' company? 

Konbini stores like 7-Eleven "are the pinnacle of what Japan does best," Leo Lewis and David Keohane said in The Financial Times.

They sell everything from food to "reasonably priced Cabernet Sauvignon" to funeral services and concert tickets. They have even served as critical aid stations during earthquakes and other disasters.

That's why it's an "open question" whether Japanese officials — despite the new shareholder-friendly rules — would "countenance" ACT's takeover bid for such an "indispensable" company. Said a customer at a Tokyo 7-Eleven: "I do not believe a foreigner could run this particular company."