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2mo ago

Couche-Tard Advances Talks with Seven & i, Aiming to Expedite $51 Billion 7-Eleven Deal

The Canadian retailer is deep in due diligence as it lines up potential buyers for stores to satisfy U.S. antitrust regulators.

The signs of convenience stores 7-Eleven and Circle K are pictured in Los Angeles, California, November 20, 2024. The Japanese owner of 7-Eleven is considering going private by buying back its own shares in a bid to avoid a takeover by Canadian rival Couche-Tard, reports said on November 20. Seven & i Holdings is eyeing the move as a countermeasure to Circle K owner Alimentation Couche-Tard's seven trillion yen ($45 billion) takeover proposal, the Nikkei business daily said. (Photo by Etienne LAURENT / AFP) (Photo by ETIENNE LAURENT/AFP via Getty Images)
A Couche-Tard sign is seen in Montreal, Thursday, Sept. 5, 2024. THE CANADIAN PRESS/Christinne Muschi

Overview

  • Couche-Tard and Seven & i signed a non-disclosure agreement in April and have since held management meetings to assess a potential ¥7.4 trillion (US$51 billion) takeover.
  • CEO Alex Miller said on June 26 that he expects the timeline to reach a definitive agreement to be shorter rather than drawn-out.
  • Both companies have received multiple indicative proposals from credible buyers for roughly 2,000 U.S. stores that may need to be divested to secure regulatory approval.
  • Seven & i has warned it won’t linger in approval limbo and is pursuing its own restructuring by selling underperforming supermarkets and exploring a U.S. retail unit listing.
  • Couche-Tard’s recent quarter showed weaker U.S. fuel and merchandise demand offset by stronger performance in Canada and Europe, reinforcing its push into food sales and personalized customer experiences.