Seven & I Holdings, owner of 7-Eleven, has received a preliminary takeover bid from Canadian convenience chain Alimentation Couche-Tard (ACT).
Seven & I and ACT both confirmed the news but did not disclose the offer price, however news of the proposal saw Seven & I shares rise by 22.7 per cent giving the company a market valuation of AUD $38 billion.
“The company is focused on reaching a mutually agreeable transaction that benefits both companies’ customers, employees, franchisees and shareholders,” ACT said in a statement.
ACT also said that at this stage there can be no certainty any agreement will be reached, and that it does not anticipate issuing any further public statements unless, or until, an agreement is reached with Seven & I.
Seven & I said it had formed a special committee to review the proposal and will act in the best interests of its shareholders and other stakeholders in the company.
“The Special Committee intends to conduct a prompt, careful, and comprehensive review of the proposal, the company’s stand-alone plans, and other alternatives for enhancing corporate value, after which a response will be made to ACT,” said Seven & I.
According to Nikkei Asia, ACT is expected to need prior approval from Japanese authorities to complete the takeover because Seven & I Holdings has security services businesses in its portfolio.
Under Japan’s foreign exchange law, security services is one of the industries that requires overseas investors to be screened before taking a stake in the company.
7-Eleven has 85,800 stores globally, employing over 157,177 employees, with a presence across Asia, North America, and other markets.
ACT currently operates in 31 countries and territories, with over 176,000 stores, and is one of the largest independent convenience store operators in the US with its Couche-Tard and Circle K banners.
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