- Couche-Tard emphasizes friendly approach, vows to retain local management
- Seven & i rejects $47B bid, cites antitrust risks and standalone growth plans
- Global convenience store industry faces consolidation amid service diversification trends
Alimentation Couche-Tard has reignited its campaign to acquire Seven & i Holdings, operator of Japan’s 7-Eleven empire, despite repeated rejections. Chairman Alain Bouchard reiterated the Canadian firm’s commitment to a collaborative merger during Tokyo press briefings, contrasting sharply with Seven & i’s public resistance. With over 20,000 domestic stores and 80,000 global outlets, 7-Eleven’s parent company argues current restructuring efforts—including CEO changes and subsidiary sales—better serve shareholder value.
The proposed acquisition, now valued at $18.19 per share (7 trillion yen/$47B), follows Couche-Tard’s initial 2022 offer of $14.86 per share. Seven & i’s new CEO Stephen Dacus countered through a September letter, stating the bid undervalues the company’s intrinsic worth while raising U.S. antitrust concerns. Industry analysts note the clash reflects broader trends: 78% of Asia-Pacific retail mergers since 2020 involved cross-border players seeking established distribution networks.
Seven & i’s defensive maneuvers include selling its Sogo & Seibu department stores to Fortress Investment Group for $1.5B—a regional case study in strategic asset shedding. Meanwhile, 7-Eleven continues expanding non-retail services like utility bill payments, which now drive 18% of Japanese store traffic. As convenience chains globally add financial services and e-commerce hubs, Couche-Tard’s 16,800-store network could theoretically integrate these innovations faster through acquisition.
Private equity’s growing influence looms over the stalemate. Bain Capital’s purchase of Seven & i’s supermarket arm and Fortress’ department store deal highlight how investment firms are reshaping Japan’s retail landscape. With convenience stores contributing 63% of Seven & i’s 2023 revenue, analysts suggest Couche-Tard’s persistence stems from seeking dominance in a $210B global c-store market projected to grow 4.8% annually through 2030.