Seven & i Seeks Government Protection After $38 Billion Approach

Seven & i Holdings Co. wants the Japanese government to require prior notification of any purchase of its shares above 10%, people familiar with the matter said, raising a potential hurdle for Alimentation Couche-Tard Inc.’s buyout proposal to proceed.

The Japanese operator of 7-Eleven stores is seeking designation as a “core” company under the Foreign Exchange and Foreign Trade Act, an upgrade from its current “non-core” status under the law, said the people, asking not to be identified because the information isn’t public.

Japan’s Ministry of Finance would have to vet any entity seeking to acquire more than ...