By Makiko Yamazaki
TOKYO (Reuters) -Japanese retail giant Seven & i Holdings has been classified as “core” to national security, according to an updated finance ministry list released on Friday.
The new classification comes a week after Seven & i rejected a $38.5 billion buyout offer from Canada’s Alimentation Couche-Tard. Couche-Tard is discussing potentially raising its offer price, according to a Bloomberg report.
Seven & i was among 88 companies newly added to a list of companies deemed to have businesses core to national security. The list generally spans companies in sectors such as nuclear power, space and semiconductors.
Foreign entities face stricter requirements about notifying the Japanese government in advance when attempting to acquire a stake in a company with a business that has been classified as “core” than they do when targeting companies with “non-core” businesses.
The classification would, however, not change the level of government scrutiny or the review process for any bid to acquire an entire company, a ministry official said.
Seven & i said its classification was not related to Couche-Tard’s buyout proposal.
The owner of 7-Eleven stores last week said Couche-Tard’s offer was not in the best interests of its shareholders and could face antitrust challenges in the U.S., where the combined company would be the biggest convenience store operator by a considerable margin.
