Seven & i Takeover Proposal Tests Japan’s Commitment to M&A

A proposed takeover of Seven & i Holdings Co. that could result in the sale of one of Japan’s strongest brands marks the first big test of the country’s evolving investor-friendly stance.

Canadian retailer Alimentation Couche-Tard Inc.’s proposal to buy the operator of 7-Eleven convenience stores follows the introduction last year of government guidelines on mergers and acquisitions instructing companies to seriously consider takeover offers. After years of activist investors pushing for change and unconsummated attempts from abroad to buy big companies, the deal is being keenly observed at home and abroad.

“It’s an important litmus test for Japan,” ...