(qlmbusinessnews.com Tues. 20th Aug, 2024) London, UK —
Canadian Retail Giant Alimentation Couche-Tard Makes £29.2 Billion Bid for 7-Eleven.
Canadian convenience store conglomerate, Alimentation Couche-Tard (ACT), has made a bold $38 billion (£29.2 billion) offer to acquire the Japanese-owned 7-Eleven chain in what could become Canada’s largest ever foreign takeover. The proposed deal, announced on Monday, could significantly expand ACT’s presence across North America and Asia.
The bid, valued at 5.6 trillion yen, represents a 20% premium on 7-Eleven's pre-bid stock price on the Japanese market. If successful, ACT's footprint in the US and Canada would more than double to over 20,000 locations, reinforcing its status as a global retail powerhouse.
ACT, which owns Circle K, confirmed that it has made a “friendly, non-binding proposal” to acquire 7-Eleven but noted there is no certainty that the deal will be finalised. The company emphasised its aim to achieve a transaction that benefits all stakeholders, including customers, employees, franchisees, and shareholders.
Seven & i Holdings, the Tokyo-based parent company of 7-Eleven, acknowledged receipt of ACT’s proposal and has established a special committee to evaluate the offer. The committee intends to conduct a thorough and comprehensive review to determine the best course of action.
Should the deal proceed, it could face scrutiny from competition regulators in North America, given the significant market overlap. 7-Eleven currently operates over 13,000 stores in the US and Canada, while ACT controls more than 9,000 outlets.
The bid follows a period of volatility in the Japanese stock market, which recently experienced significant fluctuations in response to the central bank’s decision to increase interest rates. The potential acquisition also comes amid pressure from activist investors urging Seven & i Holdings to streamline its operations and focus on the 7-Eleven brand.
7-Eleven, which was introduced to Japan in 1974 by retail mogul Masatoshi Ito, has grown into a global retail empire with 85,000 stores across 20 countries. Quebec-based ACT, listed on the Toronto Stock Exchange, operates around 17,000 stores in over 30 countries under the Circle K and Couche-Tard brands, with a market capitalisation of approximately 80 billion Canadian dollars (£45 billion).
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