Shares in Seven & I Holdings fell after the Japanese company ended talks over a potential investment in Zabka Group, Poland’s largest convenience store operator, even as it continues to look for expansion opportunities beyond its home market.

Seven & I fell as much as 2.3% on Monday after it said was unable to reach a deal that would be in the best interests of the company and its shareholders. Europe is still an attractive growth opportunity and the 7-Eleven owner will keep evaluating options in the region, according to the release.

The Tokyo-based company had earlier this month confirmed reports that it was in discussions to acquire a stake in Zabka.

A representative for Zabka wasn’t immediately available to comment. The Polish chain operates nearly 13,000 stores across its home nation and began expanding into Romania in 2024.

Seven & I has been under pressure over its lackluster share price, which has fallen around 6.5% in 2026, lagging behind Japan’s Nikkei 225 benchmark. The company drew an unsolicited takeover bid from Canada’s Alimentation Couche-Tard in 2024, which was ultimately abandoned. The Japanese retailer has since streamlined its business and promised faster growth.

With limited room for growth at home, Seven & I is aiming to expand its footprint to 30 countries and regions by 2030, from 19 currently. Europe in particular is seen as a new pillar, after the U.S. and Australia. The firm already has operations in Sweden, Denmark and Norway.

Seven & I has traditionally relied on licensing arrangements, leaving day-to-day management to local operators. Now, the company is betting that it can replicate what it achieved in Australia, where it made the local business a wholly owned subsidiary, dispatched executives, and strengthened its food offerings.

The retailer is also considering selling a stake to SoftBank and the Japanese payments company PayPay, people familiar with the negotiations have said, a move that would position them to capture more of consumers’ wallets and fuel faster profit growth.

Building a base in Europe could help offset Seven & I’s weakness in the U.S., although 24-hour convenience-store operations remain less established in the region. Gaining a meaningful foothold in such markets could help drive market expansion.

Seven & I raised its full-year operating profit guidance by about 5% to ¥425 billion ($2.6 billion) in earnings released earlier this month, beating analysts’ estimates.