Couche-Tard proposes USD31 billion acquisition of Seven & i Holdings

Seven & i Holdings Co., Ltd., a leading global retail group based in Tokyo, Japan, confirmed that it has received a confidential, non-binding, and preliminary acquisition proposal from Alimentation Couche-Tard Inc. (ACT) based in Laval, Canada. The proposal involves the acquisition of all outstanding shares of Seven & i Holdings for USD31 billion.

In response to the proposal, Seven & i Holdings has formed a special committee of the Board of Directors, composed solely of independent outside directors. This committee, chaired by Stephen Hayes Dacus, will conduct a thorough review of the proposal. The review will include evaluating the company’s standalone plans and other potential alternatives to enhance corporate value. The committee’s focus will be on acting in the best interests of shareholders and other stakeholders.

At this stage, neither the Board of Directors nor the Special Committee has made any decisions regarding the acceptance, rejection, or pursuit of the proposal or any alternative transaction. Seven & i Holdings will provide updates as necessary when further decisions are made.

While discussions are ongoing, Alimentation Couche-Tard emphasised in a statement that there is no certainty at this stage that an agreement or transaction will be reached. The company has also stated that it will not make any further public statements unless an agreement is finalised.

Seven & i Holdings is significantly larger than Alimentation Couche-Tard in terms of global reach and market size. Seven & i Holdings operates across various segments, including convenience stores, supermarkets, department stores, specialty stores, financial services, and e-commerce. Seven & i operates approximately 85,000 7-Eleven outlets worldwide, making it a giant in the convenience store industry, especially in North America, where it generates 75% of its revenue. 

Seven & i Holdings also owns other well-known retail brands such as Ito-Yokado (a leading Japanese supermarket chain), Sogo & Seibu (a department store chain), and York-Benimaru (a supermarket chain). In addition to retail, Seven & i Holdings has a significant presence in financial services through Seven Bank, which operates ATMs and banking services, and 7-Eleven Japan’s financial services division.

The company focuses on expanding its global presence, particularly in North America and Asia, while also pursuing digital transformation initiatives to enhance its retail and financial services offerings. Seven & i Holdings is listed on the Tokyo Stock Exchange and is a component of the Nikkei 225 index.

In comparison, Alimentation Couche-Tard operates in 31 countries and territories, with more than 16,700 stores, of which approximately 13,100 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, Belgium, as well as in Ireland. It also has an important presence in Luxembourg, Germany, the Netherlands, Poland, as well as in Hong Kong Special Administrative Region of People’s Republic of China. Approximately 149,000 people are employed throughout its network.