7-Eleven owner says it's received takeover bid from Canadian rival

By Steve Goldstein

Deal would combine the two leading U.S. operators of convenience stores

The Japanese owner of iconic convenience store chain 7-Eleven said Monday it's received a takeover offer from a Canadian rival after its stock surged.

Seven & I Holdings (JP:3382) said it's received an acquisition proposal from Canada's Alimentation Couche-Tard (CA:ATD), after its stock soared 23% following a Nikkei report on the deal talks.

Alimentation Couche Tard stock fell 3% in opening trade in Toronto.

Seven & I said it's formed a special committee to review the proposal, as well as outline its stand-alone plans and other alternatives for enhancing corporate value.

The Canadian company called it a "friendly, non-binding proposal" and didn't state any of the details or rationale behind it.

Alimentation Couche-Tard operates Canada's Couche-Tard as well as the U.S. chain Circle K.

If the bid came in above Monday's price, which values Seven & I at $38 billion, it would be the largest foreign takeover in Japan, according to reports citing LSEG data.

7-Eleven and Circle K are the leading convenience-store operators in a highly fragmented U.S. market, in which 63% are single-store operators, according to the National Association of Convenience Stores.

Analysts at RBC Capital Markets last month had said the current macroeconomic backdrop and interest-rate environment, and its attractive cost of capital, could lead to an accelerated pace of mergers-and-acquisition activity after a five-year drought.

Casey's General Stores (CASY) is the number-three operator, followed by U.K.-owned EG America, NACS data show.

Alimentation Couche-Tard separately said it's reached a deal to buy GetGo Cafe + Market, which operates 270 stores, from Giant Eagle for an undisclosed price.

-Steve Goldstein

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

08-19-24 0951ET

Copyright (c) 2024 Dow Jones & Company, Inc.