Incoming Seven & I CEO Reiterates Cautious Stance Over Couche-Tard’s Acquisition Proposal

Stephen Hayes Dacus, who is set to become the new president and CEO of Seven & i Holdings Co. in May, has expressed strong concerns over issues related to U.S. antitrust laws regarding an acquisition proposal by Alimentation Couche-Tard Inc., a major Canadian convenience store chain operator.

“A deal that cannot be realized is not a deal,” Dacus said during an interview with The Yomiuri Shimbun and other media outlets on Thursday.

As Couche-Tard is the second largest convenience store chain operator in the United States in terms of the number of stores following Seven & i, the U.S. Federal Trade Commission (FTC) would need to examine the possible acquisition plan to make sure it does not violate antitrust laws.

In a recent case, a merger plan between two major supermarkets was scrapped after they failed to secure FTC approval.

“Both the companies and shareholders suffered damage (from the failed merger plan). We absolutely do not want that to happen,” Dacus said.

He said he would continue to engage with Couche-Tard, but expressed a cautious stance, saying: “The FTC is closely following (the situation). The deal must be one that is achievable.”

Seven & i’s consolidated net profit for the fiscal year that ended February 2025 fell 23% year-on-year, marking the second consecutive year of decline.

The company needs to improve its performance in both Japan and the United States. Seven & i plans to invest ¥3.2 trillion through fiscal 2030 to grow the company and will announce specific measures around July.

Regarding its domestic convenience store strategy, Dacus said he aims to quickly have new products, which are currently being tested in some stores, be sold nationwide. As an example, he mentioned food products that are prepared in-store, emphasizing freshness.

“Innovation is meaningless if it is not expanded. We will accelerate our efforts to offer products and services that differentiate us from other companies,” Dacus said.

Seven & i has been buffeted in recent years by activist shareholders, who have been pushing for management reform.

“If we can accelerate sales and profit growth, we will not be a target for activists or takeovers,” Dacus said.

Dacus, who is originally from the United States, currently serves as an outside director and chairman of the board at Seven & i. He is set to succeed Ryuichi Isaka as the company’s first foreign CEO on May 27.

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