Sumitomo Corporation, which is considering financing the buyout of a company that runs the supermarket business of Seven & I Holdings, is eyeing the acquisition of a subsidiary of the retail giant.

Seven & i has decided to sell its non-convenience store business holdings and set up an intermediate holding company last month in order to facilitate the move.

Japanese trading company Sumitomo Corporation and American investment company KKR are considering participating in the bidding process to sell a majority stake in the company, according to sources.

Sumitomo is expecting a synergy between the supermarket chain it operates called Summit and Ito-Yokado.

Seven & i announced its plan to focus on its convenience store business to grow corporate value after a takeover offer was made by a Canadian company worth more than 7 trillion yen.