SoftBank and PayPay are considering buying a stake worth several hundred billion yen in Seven & i Holdings, people familiar with the matter said, in a deal that would unite Japan¡¯s dominant payments operator with its biggest convenience store operator.
The operator of 7-Eleven stores may issue new shares to be acquired by SoftBank and PayPay, said the people, who asked not to be identified because the negotiations aren¡¯t public. Sumitomo Mitsui Financial Group¡¯s credit card unit is also considering joining the deal.
A deal would help the companies fend off rival retail-payment alliances seeking to capture consumers¡¯ wallets. SoftBank and PayPay would get access to a broad array of consumers, while Seven & i would gain a deep-pocketed partner to help fend off activist shareholders or unwanted suitors.
SoftBank, PayPay and Sumitomo Mitsui are in negotiations and aim to sign a deal this summer, the people said. The discussions are in flux, and there is a chance that a final agreement won¡¯t be reached.
Representatives for SoftBank and Sumitomo Mitsui¡¯s card unit declined to comment. PayPay and Seven & i didn¡¯t immediately comment.
Seven & i¡¯s stock has been trading near levels it reached in 2024, when Circle K operator Alimentation Couche-Tard made an unsolicited, and ultimately unsuccessful, takeover proposal for the company. Chief Executive Officer Stephen Dacus has been working to turn around the Tokyo-based retailer, which underwent a restructuring following Couche-Tard¡¯s ?6.77 trillion ($42 billion) pursuit that was abandoned a year ago.
Seven & i operates its own payments and loyalty program, which could potentially be combined with PayPay¡¯s 74 million users. PayPay, owned by SoftBank, competes against digital-payments and loyalty points networks operated by Rakuten Group and NTT Docomo.
SoftBank has AI tools under development that can automate store operations. Founder Masayoshi Son is seeking to expand the company¡¯s role in the deployment of AI services and infrastructure around the world. PayPay debuted on the Nasdaq in March.
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