Couche-Tard to Consider U.S. Store Divestment for 7-Eleven Acquisition
Deal News | Mar 07, 2025 | EIN
Alimentation Couche-Tard Inc. is in exploratory discussions concerning the potential divestment of its U.S. convenience stores as part of its strategic plan to acquire Seven & i Holdings Co. Ltd., the parent company of 7-Eleven. Couche-Tard's existing proposal for the acquisition was recently increased to $47.2 billion from an initial $39 billion offer, but it remains undervalued according to Seven & i. Regulatory approvals present a significant challenge for this transaction, with U.S. antitrust concerns necessitating the divestiture of as many as 2,500 stores. Meanwhile, Seven & i is actively pursuing strategic initiatives to enhance shareholder value, which includes leadership changes and potential IPO plans for 7-Eleven in North America. Both companies continue to engage constructively to determine an actionable path forward that can address regulatory and operational challenges while enhancing value creation opportunities.
Sectors
- Retail
- Mergers & Acquisitions
Geography
- United States – The U.S. is the primary market affected by regulatory concerns and potential divestitures impacting both 7-Eleven and Circle K locations.
- Japan – Japan is relevant as the home country of Seven & i Holdings, and where Couche-Tard's executives will visit for negotiation and further discussions.
- Canada – Canada is the home base of Alimentation Couche-Tard, being a key participant in the described transaction.
Industry
- Retail – The primary industry involved is Retail, specifically the convenience store sector which is directly relevant to the main entities involved: Alimentation Couche-Tard (Circle K) and Seven & i Holdings (7-Eleven).
- Mergers & Acquisitions – The article discusses a potential acquisition deal, involving regulatory concerns and strategic divestitures, categorizing this as part of the broader M&A industry.
Financials
- $14.86 per share / $39 billion – The initial bid by Couche-Tard to acquire Seven & i which was rejected.
- $18.19 per share / $47.2 billion – The revised and current valuation bid by Couche-Tard for Seven & i.
- Potential $58 billion – The valuation for a management buyout involving Itochu Corp., which is no longer proceeding.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Alimentation Couche-Tard Inc. | Bidding Company | Company | Canadian multinational company and owner of Circle K, aiming to acquire Seven & i Holdings. |
| Seven & i Holdings Co. Ltd. | Target Company | Company | Japanese multinational retail company and parent of 7-Eleven, targeted for acquisition by Couche-Tard. |
| 7-Eleven Inc. | Other Company | Company | A subsidiary of Seven & i and the largest convenience store operator in the U.S. |
| Alain Bouchard | Chairman and Founder | People | Founder and chairman of Alimentation Couche-Tard, actively involved in the acquisition talks. |
| Stephen Dacus | Chairman and Lead Independent Director | People | Chairman of Seven & i overseeing transformational change, succeeding Ryuichi Isaka. |
| Itochu Corp. | Potential Financing Partner | Company | A Japanese trading company that withdrew from the management buyout efforts. |
| Ryuichi Isaka | Former President | People | Recently replaced as president and representative director of Seven & i. |