Alimentation Couche-Tard, the Canadian owner of Circle K convenience stores, has made a bid to acquire Seven & I Holdings, the operator of 7-Eleven, in what would be the largest foreign takeover of a Japanese company on record. Seven & I confirmed that it has received the offer and has formed a special committee to evaluate it. Couche-Tard described the proposal as friendly but stated that there is no certainty that a deal will be reached. Shares of Seven & I surged following the news, indicating a deal value that would be the largest foreign-led takeover in Japan since 1995 and the largest cross-border takeover globally in 2024.
The takeover bid by Couche-Tard comes amid changes in corporate takeover guidelines in Japan that make it harder for companies to ignore unsolicited offers. These changes are expected to increase foreign investment in the country. If the deal goes ahead, it would significantly expand Couche-Tard’s presence in North America and Europe, where it already operates convenience stores and fuel retailers. However, the proposed merger may face scrutiny from the U.S. antitrust regulator due to the combined entity’s substantial market share in the U.S. convenience store market.
Couche-Tard has a history of making acquisitions, but the takeover of Seven & I would be its largest to date. The company has previously attempted to acquire the Carrefour supermarket chain in 2021, but the deal was blocked by the French government. Seven & I Holdings has a global presence, operating thousands of stores under the 7-Eleven and Speedway brands. The acquisition of Speedway from Marathon Petroleum in 2021 further expanded its presence in North America. Despite 7-Eleven’s American origins, it was the late Japanese entrepreneur Masatoshi Ito who transformed it into a global brand offering a wide range of products.
The potential merger between Couche-Tard and Seven & I may face challenges due to the complexity of acquiring a Japanese firm. While reforms have been implemented to facilitate takeovers in Japan, many Japanese companies are cautious and resistant to change. It is expected that the special committee formed by Seven & I will carefully evaluate the proposal, along with the company’s stand-alone plans and other alternatives for enhancing corporate value, before making a decision. The focus of both companies is on reaching a mutually agreeable transaction, although the financial details of the offer have not been disclosed.
Overall, the proposed acquisition of Seven & I Holdings by Alimentation Couche-Tard represents a significant move in the global M&A landscape. If the deal is successful, it would mark a major milestone in cross-border acquisitions and further consolidate Couche-Tard’s position as a leading convenience store operator. With Seven & I’s extensive store network and brand recognition, the combined entity would have a strong presence in key markets across North America and Asia. The outcome of the deal will depend on various factors, including regulatory approvals and the willingness of both parties to engage in negotiations to finalize the transaction.
