Seven i plans to split business to focus on core convenience stores
7Eleven needs to bolster profit overseas, grow in saturated Japan, analysts say
Expanding mini supermarket format will be critical for Japan growth
7Eleven plans to close stores, beef up fresh food overseas

TOKYO, Oct 15 Reuters Japan39;s Seven i Holdings is betting it can boost value by hiving off underperforming businesses and focusing on mainstay 7Eleven stores. The outcome of its strategy will determine whether it can outmanoeuvre a 47 billion Canadian takeover bid.

Much depends on the retailer39;s ability to roll out a new store format in Japan, and improve profit margins overseas, analysts and industry insiders say.

Seven i plans to split off its supermarket operation and some 30 other noncore units into a holding company, York Holdings. It will rename itself 7Eleven Corp to emphasise its new focus and aims to bring in strategic investors for York and eventually list it.

The shakeup shows Seven i39;s determination to ditch the conglomerate discount that has weighed on its shares for years. Poor performance at the supermarket business hasn39;t helped either, making the Japanese company a ripe target for a takeover bid from Alimentation CoucheTard Inc, which owns CircleK.

The Canadian company announced a preliminary bid for Seven in August, and sources said last week it has since hiked its offer by 22 to around 47 billion. If the deal goes ahead, it would be the largest ever overseas…