TOKYO (Reuters) - Japan's Itochu has decided not to participate in a buyout for Seven & i Holdings put forward by the retailer's founding family, the Nikkei newspaper reported on Wednesday.
After receiving a takeover bid from Canada's Alimentation Couche-Tard last year, Seven & i's founding Ito family started talks to take the company private for an estimated $58 billion.
Itochu had considered investing 1 trillion yen ($6.69 billion) in the deal but ultimately saw low synergies between its food and beverage business and Seven & i, Nikkei said.
Itochu's reported participation was seen as somewhat difficult to begin with, given that the trading house already owns one of Seven & i's competitors, convenience store chain FamilyMart.
The Ito family has approached a number of private equity firms about supporting their bid, sources have said. If it materialises, the management buyout would be the largest in history.
Apollo Global Management (NYSE: APO ) is considering investing as much as 1.5 trillion yen in the deal, Bloomberg News reported last month.
($1 = 149.4400 yen)