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7-Eleven gets takeover offer from Circle K owner [Up: Alimentation Couche-Tard has sent a higher offer]

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MikeHattsu

MikeHattsu

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Oct 25, 2017
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www.bnnbloomberg.ca

Couche-Tard seeks to buy US$31 billion owner of 7-Eleven chain

Circle K operator Alimentation Couche-Tard Inc. made a proposal to take over much larger rival and 7-Eleven owner Seven & i Holdings Co., in what would be the biggest foreign takeover of a Japanese company. A merger would create the world’s top operator of roughly 100,000 convenience stores.
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www.bbc.com

7-Eleven: Canadian retail giant makes £29.2bn takeover bid

Shares in the Japan-based convenience store chain's parent company rose by more than 20% on the news.
www.bbc.com www.bbc.com

Seven & i Holdings Co., the Japanese convenience store chain operator valued at about $31 billion, has received a buyout proposal from Canadian rival Alimentation Couche-Tard Inc. in what would be the largest-ever foreign takeover of a Japanese company if realized.

Shares in Seven & i jumped by more than 20% on the news.

That gave the Japanese firm a stock market valuation of around 5.6tn yen ($38.5bn; £29.7bn).
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In a statement, Seven & i said it had "received a confidential, non-binding and preliminary proposal by ACT to acquire all [of its] outstanding shares".

"[The] Special Committee intends to conduct a prompt, careful and comprehensive review of the proposal," it added.

If a deal is agreed it could face challenges from competition watchdogs in North America as 7-Eleven owns more than 13,000 stores in the US and Canada, while Couche-Tard has over 9,000.
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Seven & i has come under pressure from activist fund ValueAct Capital Management LP over perceptions that its assets are worth more than the company is capitalizing on. In reaction, it's taken restructuring measures and initiated a buyback after fending off efforts to oust Chief Executive Officer Ryuichi Isaka.

ValueAct previously pushed the Japanese retailer to narrow its business focus to 7-Eleven stores, saying that as a standalone listed company the convenient store business could be worth as much as ¥8,500 per share. Seven & i shares closed at ¥2,161 Monday.

While best known for its 7-Eleven stores, the company's operations also include Denny's Corp.'s Japan restaurants, the Ito-Yokado supermarket chain and its own bank. Globally, its empire spans 85,000 convenience stores, gasoline stations and retail outlets.
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Couche-Tard, with a market value of C$80 billion ($58.5 billion), operates convenience stores around the world under its own brand, as well as Circle K and Ingo.

"It all depends on the price, and I guess the weak yen has made it more attractive and anything north of ¥7 trillion, the management would have a tough time rejecting," said Amir Anvarzadeh, a strategist at Asymmetric Advisors Pte. "But knowing the Seven & i management, you can bet on them resisting this if the price is lower."

Couche-Tard's balance sheet itself may not be strong enough to sustain a strong cash offer, said Mio Kato, an analyst at LightStream Research.

"I don't think Seven & I would want to sell and without an attractive cash offer, I think the probability of something happening is quite slim," Kato said.
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Grunty

Grunty

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Oct 28, 2017
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Circle K is more expensive, has worse deals, and even charges 50cents extra for using a debit card… at least the one next door does. 7-11 is worlds better.
 
Lilification

Lilification

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Mar 28, 2024
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Never been in a 7-11, but the Holiday stations in my area that they've been slowly converting to Circle K's has been a nice improvement since the buyout.

More than I can say of Casey's, which has ruined every single good convenience store they bought out and converted.
 
Vinx

Vinx

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Sep 9, 2019
1,604
7-11 bought Speedway for $21 billion 4 years ago and now Circle K wants to buy 7-11. That's too much consolidation.

In my area that would mean at least 90% of the gas stations would be owned by one company.
 
Melpomene

Melpomene

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Jun 9, 2019
18,805
Please no, I love my 7-Eleven, it's one of my only decent conveniences (pun unavoidable) in this tiny-ass town.
 
squeakywheel

squeakywheel

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Oct 29, 2017
6,495
Canada
Japanese konbini are unmatched when it comes to the perfect intersection of good tasting food and cheap prices. I can't wait to go back in October.
 
Bengraven

Bengraven

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Oct 26, 2017
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So if this goes through will 7-11s also reek of piss and employ Nazis like the Circle Ks near me?
 
Bengraven

Bengraven

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OhhEldenRing said:
At least not the Japanese ones. Even those would see a drastic reduction in quality from this shithouse merger
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Which is sad because people love the Japanese 7-Eleven so much that there was a news article a week or two ago that 7-Eleven was going to start including Japanese products in their stores. So this could put a kibosh on that. And make the ones in Japan even worse.
 
OhhEldenRing

OhhEldenRing

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Aug 14, 2024
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Bengraven said:
Which is sad because people love the Japanese 7-Eleven so much that there was a news article a week or two ago that 7-Eleven was going to start including Japanese products in their stores. So this could put a kibosh on that. And make the ones in Japan even worse.
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Ouch. Goodbye fax machines. I swear it would be such a downgrade.
 
Fatalah

Fatalah

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Sep 17, 2021
1,190
Today I also learn 7-11 was Japanese.

7-11 has the best coffee.

Love the 7-11 app for discounts and rewards points.
 
Miedo

Miedo

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Oct 27, 2017
161
I wonder what would happen to some of the other companies that Seven & i Holdings Co own .

The supermarket chain Ito-Yokado is owned by them , Loft( a department store chain ), and Japanese Denny's are also run by them . Denny's is nothing like the American version , other than being a family restaurant.
 
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