Couche-Tard eyes expansion with a bid to add 85,800 stores to its network through Seven & i acquisition
Alimentation Couche-Tard has made another attempt to acquire Seven & i Holdings, the Japanese company that owns 7-Eleven, according to a statement from Seven & i reported by BNN Bloomberg.
The Laval, Quebec-based convenience store giant has submitted a revised, confidential, non-binding proposal.
While Couche-Tard has yet to confirm the proposal or disclose its value, reports from Bloomberg and Reuters estimate that the new bid values Seven & i at approximately US$47bn, 22 percent higher than the earlier offer of $38.6bn made in August.
The previous bid was rejected by Seven & i, stating that it “grossly undervalues” their convenience store business and does not fully address concerns from US regulators.
Couche-Tard expressed disappointment over the rejection in September but remains focused on reaching a deal. The company maintains that its proposal provides strategic and financial benefits, believing both parties can reach a mutually agreeable outcome.
Couche-Tard currently operates over 16,800 stores across 31 countries, and a successful acquisition of Seven & i could add 85,800 stores to its global network.
Seven & i Holdings not only owns 7-Eleven but also operates supermarkets, food producers, household goods retailers, and financial services companies.
However, regulatory challenges may complicate the potential deal.
Neil Saunders, managing director of GlobalData, noted in an email that the Federal Trade Commission would likely scrutinize the levels of concentration, particularly due to current concerns over consolidation in the food and essentials sector.
Japanese sentiment may also pose hurdles. While reforms have made takeovers easier in Japan, many companies, including Seven & i, remain cautious about change. The complexity of Seven & i’s operating model adds further difficulty to the acquisition.
Additionally, Japan recently classified Seven & i as ‘core’ to national security, which could further complicate the deal.
This mirrors a previous setback for Couche-Tard, when its attempt to acquire French grocery chain Carrefour SA three years ago was blocked by the French finance minister, citing concerns over food security.
Though that deal fell through, both companies agreed to explore future operational partnerships.
Despite these challenges, Couche-Tard remains committed to pursuing the acquisition of Seven & i.
