By T. Jayani, JadeTimes News
A major Canadian convenience store chain has made an unexpected £29.7 billion offer for its Japanese competitor 7-Eleven, which could become the largest foreign takeover in Japan's history. Alimentation Couche Tard (ACT), the owner of Circle K, submitted the bid on Monday for the chain, which is well established across Asia and North America.
If the deal proceeds, ACT's presence in the US and Canada would more than double, increasing its total number of sites to over 20,000. The offer, valued at 5.6 trillion yen (£29.7 billion), represents a 20% premium over 7-Eleven's market value before the bid was made.
ACT described its proposal as "friendly, non-binding," and acknowledged that there is no certainty the acquisition will be finalized. The company emphasized its focus on achieving a deal that benefits customers, employees, franchisees, and shareholders of both companies.
Seven & i Holdings, the Tokyo based owner of 7-Eleven, has responded by forming a special committee to review the proposal. The committee intends to conduct a thorough and swift assessment of the offer. However, if an agreement is reached, the deal could face regulatory scrutiny in North America, as Couche Tard and 7-Eleven collectively operate over 22,000 stores in the US and Canada.
In recent years, activist investors have urged Seven & i to divest some of its assets and concentrate on its global convenience store business, particularly the 7-Eleven brand. The takeover bid also comes after significant fluctuations in the Japanese stock market, which experienced a record drop followed by a sharp rise after the central bank raised borrowing costs.
7-Eleven was first introduced to Japan in 1974 by retail magnate Masatoshi Ito, who passed away in 2023 at the age of 98. Ito is credited with transforming 7-Eleven into a global retail empire, with the chain now operating 85,000 outlets in 20 countries and regions, with a significant presence in Asia.
ACT, based in Quebec, is publicly traded on the Toronto Stock Exchange and operates around 17,000 stores across more than 30 countries and territories in North America, Europe, and Asia under the Circle K and Couche Tard brands. The company has a market capitalization of approximately 80 billion Canadian dollars ($58.2 billion; £45 billion).
