Couche-Tard expresses confidence about its deal to buy parent company of 7-Eleven
The Japanese company whose banners include 7-Eleven stores in the U.S. and Canada is still negotiating a possible buyout from Alimentation Couche-Tard Inc., with an increased price tag.
In August 2024, Tokyo-based Seven & i Holdings received a non-binding takeover proposal from Alimentation Couche-Tard, which operates more than 16,000 Couche-Tard and Circle K stores across North America and Europe, to acquire all outstanding shares of Seven & i for $14.86 per share, or $38.5 billion. (7-Eleven is the world's biggest convenience store chain, with 85,000 stores across 20 countries and territories.)
In September 2024, the Seven & i board unanimously rejected the offer, raising objections including that the proposal "grossly" undervalued the company's intrinsic value and its potential and did not properly address the many challenges a buyout would face from U.S. regulators.
In a financial filing following its rejection of the first Couche-Tard buyout proposal, Seven & i said it will close 444 underperforming North American stores and change its corporate structure so a new holding company called 7-Eleven Corp. will manage the convenience business.
A sister corporation called York Holdings Co. would operate its other businesses, such as fast food chains Laredo Taco Company, and Raise the Roof Chicken and Biscuits.
[READ MORE: 7-Eleven parent to shutter over 400 North American stores, change name]
However, in January 2025, Couche-Tard upped its offer for Seven & i to $47 billion, and the companies have been in negotiations ever since. According to Couche-Tard, it has a new multi-year plan for a merger relying on a future U.S. IPO, a long-dated capital return plan, and a turnaround in performance of Seven & i’s convenience stores.
Couche-Tard has also offered details on a number of specific aspects of its offer:
Financing
Couche-Tard plans to fully fund the transaction at time of purchase with a combination of debt and equity, sized with intention to retain strong investment grade credit ratings. Goldman Sachs, Royal Bank of Canada, and Scotiabank have also provided letters in support of its financing.
U.S. regulatory approval
Couche-Tard says it will make a commitment on a specific base number of stores it would be willing to divest, as well as a large reverse termination fee structured to ensure it would be “highly motivated” to take additional actions as may be necessary in order to complete the transaction.
The company says it would be ready to immediately begin collaborative work to align on a portfolio of stores to be divested and to prepare to market that portfolio to potential buyers.
Japan operations
Couche-Tard said it believes that the sharing of best practices, combined innovation, and scaled global supply chain from a merger with Seven & i would produce positive results and it will engage with local executives and franchisees in Japan.
Data privacy
Couche-Tard said it takes data privacy and compliance with local data protection and privacy laws and regulations across its global network “very seriously.”
“We look forward to fulsome engagement with Seven and i so that we can reach definitive terms and move forward with a transaction that is in the best interest of all stakeholders,” Couche-Tard said.
Alimentation Couche-Tard operates more than 16,800 stores under banners including Couche-Tard and Circle K, of which approximately 13,100 offer road transportation fuel.
7-Eleven is the world's biggest convenience store chain with 85,000 stores across 20 countries and territories.
