7-Eleven takeover bid: New buyout offer from Canadian firm, owner’s shares surge

Shares in the Japanese owner of 7-Eleven surged Wednesday following reports that Canada’s Alimentation Couche-Tard (ACT) had hiked its takeover offer by almost 20 per cent.

Japan’s biggest retailer Seven & i last month rejected ACT’s initial offer, saying the $40 billion proposal undervalued its business and could face regulatory hurdles.

If realised, it would be the biggest-ever foreign buyout of a Japanese firm.

But Bloomberg News and Japan’s Nikkei business daily reported Wednesday that ACT, which owns the Circle K brand, had upgraded its offer to $18.19 per share, or a total of around seven trillion yen ($47.2 billion).

Shares in Seven & i jumped nearly 12 per cent in early trade, before settling at up 4.7 per cent by mid-morning.

The new offer was sent to Seven & i on September 19, the reports said, adding that no substantive negotiations have taken place since then.

More from World

Nepal's new PM pays homage to people died during the Gen Z protest in her first national address This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal

Seven & i declined to comment on the reported move when contacted by AFP.

While 7-Eleven began in the United States, the franchise has been wholly owned by Seven & i since 2005.

7-Eleven is the world’s biggest convenience store chain and operates more than 85,000 outlets globally.

Around a quarter of those are in Japan, where it is a beloved institution, selling everything from concert tickets to pet food and fresh rice balls.

Seven & i will announce its quarterly earnings on Thursday, with the CEO scheduled to address the media.

Couche-Tard runs nearly 17,000 convenience store outlets, including Circle K, worldwide.

Impact Shorts

More Shorts

‘The cries of this widow will echo’: In first public remarks, Erika Kirk warns Charlie’s killers they’ve ‘unleashed a fire’

Trump urges Nato to back sanctions on Russia, calls for 50–100% tariffs on China

By purchasing 7-Eleven, it is seeking to become “truly global”, said Kai Li, a professor and Canada Research Chair in Corporate Governance at UBC Sauder School of Business.

“Couche-Tard has done well with Circle K acquisitions, expanding its footprint in the United States,” she told AFP.

But “such a purchase might raise antitrust concerns” given that the combined entity would have “more market power” and could drive smaller operators out of business, Li said.

(Except for the headline, this story has not been edited by Firstpost staff.)