Reuters exclusively reported that private equity firms KKR and Bain Capital each offered more than $5 billion in first-round bids for the non-core assets of Japan’s Seven & i Holdings, according to people familiar with the matter.

KKR offered around 800 billion yen ($5.1 billion) for York Holdings, an entity due to be spun out of the Japanese retailer, two of the people said. Rival U.S. firm Bain offered around 1.2 trillion yen, one person said. Local buyout firm Japan Industrial Partners offered around 750 billion yen, one said.

Why it matters

Seven & i is looking to hive off non-core businesses, including its sprawling supermarket operations. Separately, the retailer’s founding family is in talks to take Seven & i private. That deal, a management buyout, is designed to fend off a $47 billion takeover offer from Canada’s Alimentation Couche-Tard. The privatisation, if realised, would be the largest ever of a Japanese firm.