Alimentation Couche-Tard has advanced a proposal to acquire the Japanese firm Seven & i, the owner of the 7-Eleven chain. This move signals Couche-Tard’s ambition to expand its global presence in the convenience store market. The offer is described as non-binding and preliminary, as confirmed by both parties in official statements.
In a similar proposal in 2021, Couche-Tard attempted to acquire the French retailer Carrefour, but the deal fell through due to regulatory resistance. This new offer for Seven & i shows Couche-Tard’s continued strategic efforts to secure significant acquisitions. The Japanese company, with approximately 85,000 stores worldwide, presents a substantial opportunity for expansion beyond Couche-Tard’s existing 16,700 outlets.
Details of the Proposal
The Canadian company revealed that it recently sent a friendly non-binding proposal to Seven & i, aiming to acquire all outstanding shares. Couche-Tard acknowledged the uncertainty surrounding the potential deal, emphasizing its commitment to a mutually agreeable transaction. Seven & i confirmed the receipt of the proposal, describing it as confidential and preliminary.
“Neither the Board of Directors nor the Special Committee has made any determination at this time to either accept or reject the proposal from ACT, to enter into discussions with ACT or to pursue any alternative transaction,” Seven & i stated.
Review Process Underway
Seven & i announced the formation of a special committee to conduct a comprehensive review of Couche-Tard’s offer. This group will consider the company’s standalone plans and other alternatives. Seven & i trades on the Tokyo Stock Exchange and has been a significant player in the global retail market, primarily through its 7-Eleven stores.
“The Special Committee will conduct a prompt, careful, and comprehensive review of the proposal,” the Japanese company added.
If successful, this acquisition would significantly expand Couche-Tard’s reach in the global market. Both companies plan to release their quarterly financial results soon, which could provide additional insights into their financial health and future strategies. Couche-Tard’s first-quarter earnings are slated for release on September 4, while Seven & i will announce its third-quarter results in October.
The acquisition proposal by Couche-Tard reflects its ongoing strategy to expand through significant acquisitions, despite previous setbacks. For Seven & i, the decision will require careful evaluation of the benefits and potential disruptions that such a deal might bring. The outcome of this proposal could reshape the competitive landscape of the convenience store industry globally.
