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In a deal that could become Canada’s largest foreign acquisition, convenience store giant Alimentation Couche-Tard (ACT) has made a $38 billion (£29.2 billion) bid for 7-Eleven.
Circle K owner ACT approached the Japanese-owned chain, which is a staple across Asia and North America, on Monday, according to BBC. If the deal goes ahead, ACT’s footprint in the US and Canada would more than double to more than 20,000 sites. The offer of 5.6 trillion Japanese yen valued 7-Eleven at a fifth more than its pre-bid price on the Japanese stock market.
ACT said it had “submitted a friendly, non-binding proposal” to buy the retail chain but that there was no guarantee it would go ahead. “The company is focused on reaching a mutually agreeable transaction that benefits both companies’ customers, employees, franchisees and shareholders,” ACT said.
Meanwhile, Seven & I Holdings, 7-Eleven’s owner, said it had formed a special committee to consider the offer. It said it had “received a confidential, non-binding and preliminary proposal by ACT to acquire all [of its] outstanding shares”. “[The] special committee intends to conduct a prompt, careful and comprehensive review of the proposal,” it added.
The takeover offer also comes after the Japanese stock market had a record slump and then a record spike following the central bank’s decision to raise borrowing costs. This volatility in the market could have influenced the timing and terms of the bid.
7 Eleven
Retail visionary Masatoshi Ito introduced 7-Eleven to Japan in 1974, transforming the American convenience store chain into a global retail empire. Under Ito’s leadership, which lasted until his death in 2023 at age 98, 7-Eleven expanded to over 85,000 stores across 20 countries and territories. Today, the brand maintains a dominant presence, particularly in Asia.
ACT
ACT, a global player listed on the Toronto Stock Exchange, operates around 17,000 shops in more than 30 countries and territories across North America, Europe, and Asia under the Circle K and Couche-Tard brands.
