Żabka Falls 10 percent as Seven & i Walks Away From Takeover Talks
Seven & i Holdings has ended talks to acquire a stake in Żabka Group, the Japanese retailer said Monday, walking away from a deal it had confirmed pursuing just eleven days earlier.
Seven & i said it couldn’t reach an agreement in the best interests of the company and its shareholders, though it called Europe an attractive growth opportunity and said it will keep evaluating options in the region.
Żabka shares fell more than 10 percent in Monday trading.
This is almost exactly the scenario I flagged in Sunday’s piece on Żabka: a large chunk of the rally was a bet on an unsigned deal, and walking away would likely open a fast air pocket rather than a gentle fade. That’s what happened.
Seven & i’s only European foothold now remains its Nordic operations in Sweden, Denmark and Norway, with Poland’s largest convenience chain no longer part of the plan.
