According to Nikkei Asia, Seven & I Holdings, the company behind the 7-Eleven convenience store chain, has received a takeover bid from Canadian convenience store giant Alimentation Couche-Tard. Seven & I has formed a committee to evaluate the proposal and is considering whether to accept the takeover offer. Details such as the amount of stock and the method of acquisition have not been disclosed.
Seven & I’s current market capitalization stands at around 4.6 trillion yen ($31.1 billion), implying that a 100% acquisition by the Canadian company would cost at least 5 trillion yen. Nikkei Asia suggests that this could be the largest M&A deal by a foreign company for a Japanese firm.
Following guidance from Japan’s Ministry of Economy, Trade, and Industry (METI) last year, takeover proposals need to be considered by the board of directors. In the case of Seven & I, if the board rejects the proposal, Alimentation Couche-Tard would need to pursue other options.
Circle K’s parent company aims to acquire the company behind 7-Eleven stores
Alimentation Couche-Tard currently operates approximately 17,000 stores in 30 countries and owns the Couche-Tard and Circle K brands. The company is listed on the Toronto Stock Exchange with a market capitalization of CA$80 billion ($58.5 billion). In the fiscal year ended April 2024, Alimentation Couche-Tard generated revenue of $69.2 billion. Seven & I’s revenue for the fiscal year ended February 2024 was 11 trillion yen ($75 billion).
If the merger goes through, Alimentation Couche-Tard would become one of the largest retail groups in the world, with convenience stores as its core business. The brand aims to expand its business and store network globally. Meanwhile, Seven & I has 85,000 convenience stores in 20 countries and aims to increase this number to 100,000 in 30 countries and regions by 2030. In 2021, Seven & I acquired Speedway, which operates convenience stores at gas stations in the US.
Commenting on the potential deal, experts noted significant differences between the two companies in terms of business philosophy, product development, and employee training. Additionally, compared to Alimentation Couche-Tard, Seven & I has a stronger focus on Japanese-style convenience meals-to-go.
“It all depends on the price, and I guess the weak yen has made the deal more attractive. At any price above 7 trillion yen, the Seven & I board would find it hard to refuse,” said Amir Anvarzadeh, a strategist at investment advisory firm Asymmetric Advisors in Singapore. “The Seven & I board may oppose this if the proposed price is low.”
“I don’t think Seven & I wants to sell, and unless there’s an attractive cash offer, I think the chances of something happening are pretty slim,” said another expert, Kato.
Source: Nikkei Asia
Entrepreneur Hồ Xuân Năng: A breakthrough with a “reverse” M&A that built up a nearly 9,000 billion dong asset
Mr. Ho Xuan Nang, back when he was the leader of the company, experienced a reverse takeover, where his own company was taken over instead.
AGG’s Positive Land Fund Development, Launching New Project
An Gia Real Estate Group (AGG) is committed to expanding its portfolio with clean land, quick implementation, and suitable development of affordable housing and apartments.
Real estate companies strategize to “hunt” new land funds
An Gia Real Estate Group (AGG) is dedicated to expanding its portfolio of prime land, ensuring fast implementation, and developing affordable housing projects and budget-friendly apartments that cater to the needs of all.
The Powerful “Sharks” Behind a Series of $1 Billion Real Estate Acquisition Deals: When M&A is the Fastest Path!
“Strong in rice, fierce for money”, in a challenging real estate market, there are still “sharks” silently “hunting for prey”.
