Seven & I Holdings, the Japanese company that owns 7-Eleven convenience stores in the U.S., Japan and elsewhere, has reached a deal to take over department stores Seibu and Sogo. The $1.1 billion acquisition will make Seven & I the largest retailer in Japan by sales.

Under the deal announced Monday, Seven & I will buy a 65 percent stake in Millennium Retailing, which runs the Seibu and Sogo chains. Millennium is currently controlled by an affiliate of Japanese brokerage Nomura Securities. Seven & I plans to buy up the remaining shares of Millennium by March of next year.

The takeover of Seibu and Sogo will help 7-Eleven's parent company expand into the luxury retail market, at a time when Japanese consumer spending is surging.

Some information for this report provided by AP and AFP.