7-Eleven, the global convenience store giant, has received a buyout offer from a Canadian competitor, marking what could become Japan’s biggest foreign takeover.
Seven & i Holdings, based in Tokyo, announced on Monday that it had been approached by Alimentation Couche-Tard (ACT), a major Canadian convenience store chain, with a bid to acquire its stake in 7-Eleven.
Seven & i has disclosed that ACT has made an initial offer to buy all of its outstanding shares. In response, the company has created a special committee to review the offer and provide guidance to the board. The announcement of the potential takeover caused Seven & i’s stock to jump by 22% on Monday, raising the company’s market value to 5.6 trillion yen ($38 billion/ £29.6 billion).
Backgrounds of These Giants
Circle K owner Alimentation Couche-Tard (ACT), headquartered in Quebec, began over 40 years ago with its first convenience store in Quebec and now manages 652 locations across Canada. The company made a significant move in 2003 by acquiring the U.S.-based Circle K chain, which has since expanded to more than 24 countries worldwide.
Headquartered in Quebec, ACT currently operates nearly 17,000 stores across North America, Europe, and Asia under the Circle K and Couche-Tard brands. Listed on the Toronto Stock Exchange, ACT has a market valuation of around 80 billion Canadian dollars ($58.2 billion; £45 billion).
Seven & I Holdings AKA 7-Eleven‘s origins date back to 1920s Texas, where it first opened its doors. The chain adopted its name in 1946 to highlight its extended hours of 7 a.m. to 11 p.m. Over the decades, 7-Eleven grew throughout the U.S. and gained fame for its signature items, such as the Slurpee and the 32-ounce Big Gulp.
The brand’s popularity surged, leading to its acquisition in 2005 by Ito-Yokado, a major stakeholder through Seven & i Holdings. This acquisition further fueled 7-Eleven’s growth, solidifying its presence in the U.S. and globally.
The committee from Seven & I overseeing the takeover evaluation will be chaired by Stephen Hayes Dacus. They have committed to conducting a swift review of the offer but emphasized that no decision has yet been made regarding its acceptance or rejection.
