Circle K Owner Seeks to Buy 7-Eleven

Alimentation Couche-Tard Inc. (Laval, Que.) confirmed that it recently submitted what it called “a friendly, non-binding proposal” to acquire Seven & i Holdings Co. Ltd.(Tokyo), operator of the 7-Eleven chain. In a separate announcement, Seven & I said it is evaluating the overture.

This would be a David-buys-Goliath deal; Couche Tard and its Circle K brand operate a total of about 16,700 stores, while Seven & I runs almost 86,000 locales under its 7-Eleven banner.

Couche said its offer “is focused on reaching a mutually agreeable transaction that benefits both companies’ customers, employees, franchisees and shareholders. There can be no certainty at this stage that any agreement or transaction will be reached. The company does not anticipate issuing any further public statements regarding discussions with Seven & i unless or until an agreement is reached.”

In its statement, Seven & I Holdings “confirmed that it has received a confidential, non-binding and preliminary proposal by ACT to acquire all outstanding shares of the company. The board of directors has formed a special committee, comprised solely of independent outside directors and led by Chairperson Stephen Hayes Dacus, to review the proposal.

“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.

“Neither the Board of Directors nor the Special Committee has made any determination at this time to either accept or reject the proposal from ACT, to enter into discussions with ACT or to pursue any alternative transaction.

Based on Seven & I’s current share price, the company has a market value exceeding $38 billion, which means if the deal were to go through — which many industry observers say is unlikely — it would be the largest foreign-led acquisition of a Japanese company.