Convenience store giant Circle K Eyeing Large-Scale Partnership with 7-Eleven
On Monday, Seven & I Holdings, the overseer of 7-Eleven, acknowledged receiving an offer from Canada's Alimentation Couche-Tard to buy out all their remaining shares.
Seven & I revealed they've set up a "special committee" to scrutinize this proposition, mentioning no decision has been finalized yet.
"The special committee plans to expeditiously assess the proposal, Seven & I's solo strategies, and other potential methods for increasing corporate worth. Post this evaluation, a response will be issued to Couche-Tard," they added, keeping financial specifics under wraps.
CNN reached out to Couche-Tard for comment.
Seven & I's shares jumped almost 23% in Tokyo on Monday, elevating their market worth to surpass $38 billion. This potentially indicates a deal worth more than any other foreign-led takeover in Japan since Dealogic started recording data in 1995.
The takeover bid was instigated following Japan's government making it tougher for companies to disregard unsolicited offers. The modifications to corporate takeover protocols are anticipated to stimulate foreign investments into the country.
Should the deal materialize, Couche-Tard's influence would broaden, extending their dominance across North America with Couche-Tard and Circle-K convenience stores and Europe through Ingo fuel retailers.
The Canadian group has made various acquisitions throughout the past decade, but this takeover would mark their largest acquisition yet. It follows more than three years after their aborted effort to acquire the Carrefour supermarket chain in 2021 when the French government thwarted the takeover.
Seven & I Holdings manages over 83,000 stores worldwide, including 7-Eleven shops and the Speedway chain of gas stations in the United States. The group secured Speedway from Marathon Petroleum for $21 billion in 2021, bolstering its standing in North America.
Although 7-Eleven's roots can be traced back to Dallas, Texas, it was the late Japanese entrepreneur Masatoshi Ito who is renowned for transforming it into a global retailer selling goods ranging from yogurt to ready-made meals and medications. Ito passed away last year at the age of 98.
The potential acquisition by Couche-Tard could significantly expand Seven & I's business in various regions, potentially increasing their overall value. If the deal goes through, Couche-Tard's business portfolio would encompass even more convenience stores globally.
