Seven & i Acquisition Perceived Detrimental to National Security

Japan's Economy Minister, Ryosei Akazawa, emphasized on Wednesday that any foreign acquisition of retail giant Seven & i Holdings is closely tied to national security concerns. His remarks come amid a $47 billion buyout offer from Canadian firm Alimentation Couche-Tard, which Seven & i has already rejected. 

Seven & i, owner of the global convenience store chain 7-Eleven, was designated a "core" national security asset in September. While Japan's finance ministry stated this classification wouldn't impede potential acquisitions, it underscores the critical role Seven & i plays in the nation's infrastructure. 

Akazawa, speaking at the Japan National Press Club, highlighted the strategic importance of convenience stores and their distribution networks during disasters. He cautioned that foreign ownership driven solely by profit motives might compromise disaster response capabilities. 

"Convenience stores like Seven & i can be instrumental in delivering hot food and essential supplies to affected regions during emergencies," Akazawa noted. "If such operations were in foreign hands, we would need to carefully consider whether full support could be guaranteed in times of need." 

Akazawa's comments reflect a broader trend of increased global scrutiny over foreign acquisitions on national security grounds. This follows similar moves, such as U.S. President Joe Biden's decision to block Nippon Steel's $14.9 billion bid for U.S. Steel. 

When asked about potential interest rate hikes by the Bank of Japan (BOJ), Akazawa expressed curiosity about whether current interest rates were "normal." He suggested that the BOJ might aim to create policy flexibility by allowing room for future rate cuts during emergencies. However, he reiterated that decisions on monetary policy rest with the central bank. 

The debate over Seven & i’s future reflects the tension between global business opportunities and national interests, a balance Japan appears keen to maintain.