Nipponica

Japanese trading house Itochu will begin discussions with the banking unit of the 7-Eleven convenience store chain on a capital and business alliance, as it looks to increase its consumer financial service offerings.

The Japanese trader has "agreed to commence discussions" with Seven Bank on the tie-up, "including collaboration across a wide range of financial fields," it said on Monday. Nikkei understands that Itochu is considering acquiring not only Seven Bank's treasury shares -- stock bought back from shareholders -- but also shares held by institutional investors. Combined, they would potentially amount to a 20% stake.

Worth noting that Itochu owns FamilyMart. Compared to the failed Couche-Tard deal, increased domestic partnerships like this seem like a better way to grow.