In a significant move, Tokyo-based Seven & I Holdings, the parent company of 7-Eleven, has turned down an initial $38.5 billion acquisition offer from Canadian firm Alimentation Couche-Tard, the operator of Circle K stores. The offer, which sought to acquire all outstanding shares of Seven & I at $14.86 per share in cash, was deemed insufficient by the Japanese conglomerate, which cited concerns over both valuation and regulatory complications.
Seven & I stated on Friday that while it remains open to considering offers that serve the best interests of its shareholders, it would reject any proposal that undervalues the company or overlooks key regulatory challenges. The firm specifically pointed out that the merger would face considerable scrutiny from U.S. antitrust regulators, particularly given the size and scope of its operations in North America.
The proposed deal, if completed, would have represented the largest foreign-led takeover in Japan since 1995, according to financial data provider Dealogic. Additionally, it would have been the biggest cross-border acquisition worldwide this year. The merger would have significantly expanded Couche-Tard’s already extensive presence in North America and Europe, further consolidating its position in the global convenience store industry.
However, Seven & I was quick to highlight the challenges that a deal of this magnitude would face, especially in the U.S. market. The company, which acquired the Speedway chain in 2021 for $21 billion, already holds a substantial portion of the convenience store market in North America. As a result, any further consolidation would likely attract intense scrutiny from regulatory authorities concerned about anti-competitive practices.
Shares of Seven & I have risen sharply since news of the offer broke in August, boosting the company’s market value to over $38 billion. Despite rejecting the initial bid, there are indications that Seven & I may be open to a higher offer from Couche-Tard. Sources have suggested that the Japanese company might consider further negotiations if the terms are improved.
The takeover bid comes amid changing corporate governance laws in Japan, designed to encourage foreign investment and prevent companies from easily dismissing unsolicited offers. These changes are part of the government’s broader strategy to make Japan a more attractive market for international investors.
Although 7-Eleven is originally an American brand, having been founded in Dallas, Texas, its global expansion is largely credited to Japanese entrepreneur Masatoshi Ito. Ito, who passed away in 2022, is remembered for transforming the convenience store into a worldwide brand. Today, 7-Eleven is a staple in multiple countries, with over 83,000 stores under Seven & I’s umbrella.
