7-Eleven receives takeover approach from Alimentation Couche-Tard

(Sharecast News) - Canadian convenience store giant Alimentation Couche-Tard is studying a potential takeover offer for Japanese peer Seven & i Holdings, which operates the 7-Eleven chain alongside other retail outlets.

Seven & i announced on Monday that it had received a "confidential, non-binding and preliminary proposal" by ACT to acquire all outstanding shares, causing shares in the retail titan to soar 23% in Tokyo.

The company has now formed a special committee of independent outside directors, lead by its chair, to review the proposal, but has not yet engaged with ACT in any discussions.

Seven & i, which generated sales of JPY17.8trn (£94bn) in 2023, runs 22,800 stores across Japan and 85,800 worldwide, predominantly operating convenience stores, superstores and a financial services arm, alongside other retail outlets.

The stock was up 22.7% at JPY2,161 before the close, giving it a market capitalisation of JPY5.63trn (£30bn).

"Consistent with its obligation to act in the best interest of its shareholders and other stakeholders of the company, the Special Committee intends to conduct a prompt, careful and comprehensive review of the proposal, the company's stand-alone plans and other alternatives for enhancing corporate value, after which a response will be made to ACT," the Japanese firm said in a regulatory filing.

ACT has nearly 10,000 convenience and petrol station owned and franchised stores under the Couche-Tard, Circle K and Ingo brands. The company's global footprint spans North America, Europe and other international regions, with a big presence across South-East Asia (Cambodia, Vietnam and Indonesia). However, it doesn't yet have a foothold of the Japanese market.