Canadian Company Proposes to Buy 7-Eleven for $37.5 Billion

By Thea Felicity

Aug 19, 2024 10:03 AM EDT

A 7-Eleven signage is seen at a store on Ocean Parkway on December 05, 2023 in the Prospect Park South neighborhood of the Brooklyn borough in New York City.
(Photo : Michael M. Santiago/Getty Images)

Canada's convenience store leader, Alimentation Couche-Tard, put out a surprise $37.5 billion bid to buy the international convenience store chain, 7-Eleven.

The acquisition, if approved, would be one of the largest foreign takeovers ever attempted by a Canadian company, according to BBC.

The offer, made on Monday, August 19, means that deal showers down 7-Eleven at a calculated 5.6 trillion yen-a value twice its previous listing in Tokyo.

Parent Japanese company, Seven & i Holdings surged more than 20% at the outset after the news was announced. Already, the Tokyo headquartered firm has acknowledged the deal, with the creation of a special committee that will consider the non-binding and preliminary offer presented by the Couche-Tard.

The Guardian shared that the 7-eleven parent company is currently conducting a "thoughtful and thorough" review of the offer.

Who Will Buy 7-Eleven?

Starting in 1974, 7-Eleven has snowballed into a global convenience store giant with 85,000 outlets worldwide. Meanwhile, Alimentation Couche-Tard, which owns the Circle K and Couche-Tard brands, operates about 17,000 stores on three continents: North America, Europe, and Asia.

The acquisition would more than double its footprint in the U.S. and Canada, expanding its presence to over 20,000 locations. However, competition regulators in North America may question a deal that puts two companies with that many stores in their home market: 7-Eleven has more than 13,000 stores in North America, while Couche-Tard currently runs more than 9,000.

Looking ahead, the deal is aiming to move aggressively due to the recent volatility in the Japanese stock market, which showed unprecedented swings early in the month, per VCPost.

The possible takeover comes after months of pressure from activist investors who have asked Seven & i Holdings to reduce its operations and focus on the 7-Eleven brand.