Seven & I, a holding company of Japanese department store and grocery giant Ito-Yokado and Seven-Eleven Japan, aims to buy the remaining 27.3 per cent stake in the US business at a 15 per cent premium by October 3.
The company advised 7-Eleven minority shareholders to take the offer or risk a downturn in profits because the retailer needs to invest in merchandising and store renovations, as well distribution, logistics and information systems.
Seven & I is also trading for the first time under a new holding company structure, becoming Asia's biggest retail group, with a market value of more than ¥4.5 trillion (£22.3 billion).
This is intended to enable the retail group to compete better in Japan's saturated retail market, using group synergies while blocking unwelcome takeover attempts.
Seven & I aims to strengthen the US convenience store business and expand as a group by making 7-Eleven a wholly owned unit.
Ito-Yokado, which owns 50.6 percent of Seven-Eleven Japan, has depended on the convenience store chain to generate more than 90 per cent of group profits as the parent struggles in the embattled Japanese retail market.
On Wednesday, Seven & I raised its operating profit target for 2008/09 by nearly 10 per cent to ¥340 billion (£1.69 billion), claiming synergy effects will reduce costs.
It also plans to close at least 30 under-performing Ito-Yokado stores in the next four years.
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