Nikkei is reporting that Softbank-owned Fortress Investment Group has made an offer of about 200 billion yen ($1.48 billion) to parent company Seven & i Holdings for Japanese department store unit Sogo & Seibu. Seven & i is the parent company of 7-eleven convenience stores.

Fortress has acquired the right of first refusal in the acquisition of Sogo & Seibu, as Seven & i is being pressured by activist investors to focus on its core convenience store business.

Neither entity involved responded to requests for comments.

It is also being reported the US firm is making a deal with Japanese electronics and appliance retailer Yodobashi Holdings to revamp the physical locations after the acquisition. Fortress is looking at having Yodobashi run its store in the Seibu department in Ikebukuro, Tokyo.

Leveraging its 4.4% stake in Seven & i, Investment firm ValueAct has been pushing for the sale, arguing that Seven & i could see stock gains of more than 200% simply by focusing on its core business.

In April Seven & i promised it would continue to review and adjust its business portfolio. As part of that, it organized a strategic review of Sogo & Seibu by a financial adviser.

It is expected there will be more detailed negotiations soon between Seven & i and Fortress covering issues of employment, and whether or not to shutter some stores, according to the Nikkei report.