Alimentation Couche-Tard, the Canadian owner of Circle K convenience stores, has made a bid to acquire the Japanese company Seven & I Holdings, the operator of 7-Eleven. If successful, this would mark the largest foreign acquisition of a Japanese company and the biggest cross-border deal globally in 2024.
Seven & I confirmed the offer and announced the formation of a special committee to evaluate the proposal. However, no final decision has been made yet regarding the acquisition.
Couche-Tard characterized the offer as “friendly” but acknowledged the uncertainty of reaching a final agreement. The company is focused on negotiating a mutually acceptable deal but refrained from disclosing specific financial terms.
In response to the news, shares of Seven & I surged by nearly 23%, pushing its market value above $38 billion. This potential deal surpasses any other foreign-led acquisition in Japan since 1995, according to Dealogic.
The bid follows Japan’s recent changes to corporate takeover guidelines, which have made it harder for companies to reject unsolicited offers. These reforms are expected to boost foreign investment in Japan.
The acquisition would significantly expand Couche-Tard’s global presence, especially in North America and Europe, as it already operates thousands of convenience stores and fuel retailers under the Circle K and Ingo brands. The combined entity would control nearly 20% of the U.S. convenience store market.
However, the proposed merger is likely to attract scrutiny from the U.S. Federal Trade Commission due to the high market concentration it would create.
According to Neil Saunders of GlobalData, the transaction may also face challenges related to Japan’s traditionally cautious approach toward foreign takeovers. While Japan has made reforms to ease such acquisitions, cultural and corporate resistance may still pose obstacles to a deal.
Couche-Tard has a history of pursuing major acquisitions, including an unsuccessful attempt to buy the French supermarket chain Carrefour in 2021. Seven & I operates more than 83,000 stores worldwide, including 7-Eleven outlets and Speedway gas stations in the United States.
The company’s expansion into North America was bolstered by its $21 billion acquisition of Speedway in 2021. Although 7-Eleven originated in Texas, the brand became a global powerhouse under the leadership of the late Japanese entrepreneur Masatoshi Ito, who passed away last year at age 98.
