Circle K Owner Proposes Takeover Bid for 7-Eleven

The owner of convenience store giant 7-Eleven, Tokyo-based Seven & i Holdings, has received a buyout offer from Canadian competitor Alimentation Couche-Tard (ACT), which operates the Circle K chain. In response, Seven & i has formed a special committee to evaluate the proposal.

Following the news, Seven & i’s shares surged by over 20%, bringing the company’s market valuation to approximately 5.6 trillion yen ($38.5 billion; £29.7 billion).

In an official statement, Seven & i disclosed that it had received “a confidential, non-binding, and preliminary proposal by ACT to acquire all [of its] outstanding shares.” The company further noted that the Special Committee “intends to conduct a prompt, careful, and comprehensive review of the proposal.”

If the deal proceeds, it may encounter scrutiny from competition regulators in North America, given that 7-Eleven operates more than 13,000 stores across the U.S. and Canada, while Couche-Tard manages over 9,000 outlets.

In recent years, activist investors have urged Seven & i to divest some of its assets to concentrate on the 7-Eleven brand and its global convenience store operations.

The 7-Eleven brand was introduced to Japan from the U.S. in 1974 by retail magnate Masatoshi Ito, who passed away in 2023 at the age of 98. Ito is celebrated for transforming the convenience store chain into a global retail powerhouse.

Today, 7-Eleven boasts 85,000 locations in 20 countries and territories, with a significant presence in Asia. Meanwhile, Quebec-based ACT, which is listed on the Toronto Stock Exchange, operates approximately 17,000 stores in over 30 countries and territories across North America, Europe, and Asia under the Circle K and Couche-Tard brands. ACT currently holds a market valuation of around 80 billion Canadian dollars ($58.2 billion; £45 billion).