Żabka Stock Hits 52-Week High on 7-Eleven Operator Takeover Talks

Shares of Żabka Group SA surged on the Warsaw Stock Exchange, climbing 8.3% to close at 33.15 PLN after touching a new 52-week high of 33.3 PLN. The rally was driven by reports that Seven & i Holdings, the Japanese parent company of the 7-Eleven convenience store chain, is in advanced talks to purchase a significant stake in the Polish retailer.

M&A Speculation Drives Gains

The primary catalyst for the stock's sharp upward movement was a report first published by the Nikkei business daily. According to the report, Seven & i Holdings is negotiating to acquire a stake of "several tens of percent" in a transaction valued at several hundred billion yen.

Seven & i Holdings subsequently confirmed it was in discussions with a large Polish convenience store operator but noted that no final decision has been reached. The potential deal represents the Japanese conglomerate's most significant overseas convenience store investment in five years.

Strategic Significance

For Seven & i, the acquisition would dramatically expand its European footprint, which is currently limited to approximately 360 stores in Nordic countries. Analysts at Noble Securities described the potential transaction as one of the largest foreign investments in Poland's retail sector, underscoring the strategic value of Żabka's extensive network of roughly 10,000 franchise-operated stores.

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A secondary factor supporting investor sentiment was the company's board recommending a cash dividend of PLN 0.12 per share, with an ex-dividend date of July 24, 2026.

Outperforming a Weaker Market

Żabka's performance stood in stark contrast to the broader market, which faced headwinds from a sell-off in semiconductor stocks on Wall Street. The blue-chip WIG20 index fell 0.20%, with 16 of its 20 constituents declining, while the wider WIG index lost 0.30%.

Extending a rally from the previous session, Żabka was the top-performing stock on the WIG20 index for a second consecutive day. The combination of a potential transformative strategic partnership and solid fundamentals propelled its shares well above consensus price targets.