7-Eleven owner plans to split its businesses to fend off takeover bid

7-Eleven owner Seven & i Holdings is embarking on its biggest-ever overhaul, betting that a bold break-up will help fend off an unsolicited takeover proposal from a smaller rival.

"We are going to speed up our transformation," chief executive officer Ryuichi Isaka said in his first remarks since a buyout approach from Canada's Alimentation Couche-Tard became public in August.

Seeking to restore profitability and focus more on convenience stores, Mr Isaka laid out a major revamp: "This plan is designed to bring out our strengths and achieve greater growth."

Seven & i essentially unveiled a plan to split in two: One business would be focused on 7-Eleven, convenience stores and petrol stations, and the other would be a collection of 31 less profitable retail operations that might bring in strategic partners and eventually be listed separately.

The big question is whether the move will be enough to win over any investors warming to Couche-Tard's approach.

The potentially problematic backdrop to potential deal negotiations is that Seven & i's core convenience store business is weakening, and it is unclear if the retailer - which will also rename itself 7-Eleven - has a plan to address that.