Seven & i Holdings Considers $47bn Couche-Tard Acquisition

Seven & i Holdings, the owner of 7-Eleven, has started negotiations with Canada's Alimentation Couche-Tard on a $47 billion takeover bid, as a new proposal emerges from members of the founding Ito family. The Canadian company's interest in purchasing the world's largest convenience store operator dates back two decades, with the formal offer becoming public in August. This would represent Japan's largest-ever takeover deal. As preliminary talks with Couche-Tard are underway, Seven & i announced it received a confidential, non-binding proposal from the Ito family, marking the first potential white knight bidder for the company amidst the competitive M&A landscape. Junro Ito, a vice-president of the company, and Ito Kogyo, representing other family members, lead the proposal, which would require substantial financing from Japan's major banks and investment from a domestic company. Notably, Itochu, a key player in Japan's trading sector, has been linked to discussions over the new proposal. This proposal comes as a special committee within Seven & i weighs the offers and the company's independent growth opportunities. Couche-Tard's raised bid of $47 billion follows an initial $39 billion offer that was rejected. There is concern within the Ito family regarding the potential foreign ownership of Japan’s largest retailer, stimulating an energetic search for a domestic buyer. The corporate landscape remains volatile as strategic decisions loom large for Seven & i.