A leading Canadian convenience store chain might soon grow even larger as the owner of Circle K, Alimentation Couche-Tard Inc., has made a bid to acquire one of the biggest players in the sector. The Laval, Quebec-based company has offered to purchase all outstanding shares of Japan’s Seven & i Holdings Co. Ltd., the owner of 7-Eleven, aiming to create a global retail powerhouse.
Seven & i Holdings confirmed it received the offer, describing it as "friendly" and "non-binding." Couche-Tard, while not disclosing specific terms, expressed its intent to reach a mutually beneficial agreement that would serve the interests of both companies' customers, employees, franchisees, and shareholders.
Neil Saunders, managing director of GlobalData, emphasized the significance of this potential deal, calling it a "huge" move. Couche-Tard already operates in 31 countries with over 16,700 stores under the Couche-Tard, Circle K, and Ingo brands. On the other hand, Seven & i runs about 85,800 stores, employing over 157,000 people and attracting 63.6 million customer visits daily.
Beyond its well-known 7-Eleven stores, Seven & i owns a diverse range of businesses, including supermarkets, food producers, and financial services. In the U.S., 7-Eleven holds a 14.5 percent market share in the convenience retail space, while Couche-Tard’s banners account for 4.6 percent. Saunders noted that a merger would create a company controlling nearly a fifth of the U.S. market.
Despite the publicized offer, Couche-Tard cautioned that there is no certainty an agreement will be reached. Seven & i has formed a special committee to review the proposal, and Couche-Tard has stated it will not make further public comments until a deal is finalized.
Irene Nattel, an analyst with RBC Capital Markets, pointed out that it's unclear which of Seven & i's assets Couche-Tard would keep if the acquisition goes through, but she highlighted 7-Eleven as the "crown jewel." Nattel also noted potential regulatory challenges, especially in Japan and the U.S., where such large transactions are under close scrutiny.
Saunders agreed, suggesting that while competition concerns might be minimal given the broader food and grocery market, the deal would likely attract attention from the Federal Trade Commission due to the significant market consolidation.
Couche-Tard has faced similar hurdles before. In 2021, its attempt to acquire French grocer Carrefour SA was blocked by the French government over food security concerns. The proposed deal with Seven & i is even larger and could transform Couche-Tard into a dominant global player, though Saunders cautioned that whether the benefits outweigh the costs remains to be seen.
Separately, Couche-Tard announced a deal to acquire GetGo Café + Markets from Giant Eagle Inc., further expanding its footprint in the U.S.