Seven & i, the Japanese retail group that owns 7-Eleven, saw its shares jump after Canadian convenience store operator Alimentation Couche-Tard said it was ready to make a $47 billion offer for the company. The proposal reflects Couche-Tard’s ambition to expand globally and could benefit Seven & i shareholders if the terms are favorable. The potential acquisition is part of a growing trend of consolidation in the convenience store sector, as operators seek broader market access and economies of scale.
Analysts are eagerly anticipating further developments, as discussions between the two companies could lead to one of the largest retail acquisitions this year. Couche-Tard’s new offer, submitted on September 19, valued Seven & i at more than $47 billion, which is around 20% higher than previous offers. Seven & i’s shares closed 4.7% higher in Tokyo following the news, having initially jumped by 9.5%.
Seven & i emphasized that it “will continue to act in the best interest of its shareholders and other stakeholders.” The company had previously rejected a takeover offer from Couche-Tard, arguing that it undervalued the firm and would have faced significant regulatory hurdles.
Couche-Tard’s global expansion ambition
After the previous offer was turned down, Japan’s Finance Ministry added Seven & i to a list of businesses considered “core” to the country’s national security.
This designation forces potential foreign buyers to undergo a government review but is not seen as a significant barrier to Couche-Tard’s buyout effort. Historically, Japanese companies of Seven & i’s size have not been acquired by foreign firms. Instead, Japanese companies have often been the ones purchasing foreign businesses.
Last year, the Japanese government issued new guidelines on mergers and acquisitions, encouraging companies to consider credible takeover offers thoroughly before rejecting them. 7-Eleven is the world’s largest convenience store chain, with 85,000 outlets across 20 countries and territories. As Couche-Tard intensifies its pursuit of acquiring smaller competitors, 7-Eleven is expected to bolster its defenses significantly to maintain its dominant position in the market.
