Alimentation Couche-Tard Inc., the parent company of the Circle K convenience-store brand, is seeking backing from some of Canada’s largest pension funds to support its proposed acquisition of Seven & i Holdings Co. Ltd., the Tokyo-based parent company of the 7-Eleven convenience-store chain, according to a Bloomberg report citing people familiar with the matter.
Earlier this month, Couche-Tard submitted a nonbinding proposal to acquire Seven & i, a deal estimated at $38 billion. Seven & i has confirmed that it has received the proposal and that it has created a special independent committee to review the offer.
The retailer is reaching out to funds including Caisse de Depot et Placement du Quebec, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan to gauge their interest in providing equity, the people told the news agency. It is seeking to raise several billion dollars from co-investors, according to the people.
Couche-Tard is considering a range of funding options, from debt financing to issuing stock, the people told Bloomberg, asking not to be identified because the information is private. Discussions with the Canadian pension funds are ongoing and no final agreements have been reached, the report said.
Representatives for Couche-Tard and the pension funds declined to comment on the matter to the news agency.
Seven & i is considering ways to block a takeover bid from Couche-Tard, according to Bloomberg. It is seeking reclassification of 7-Eleven’s status from a “non-core” to “core” rating or “protected” status under Japan’s Foreign Exchange and Foreign Trade Act, insider sources said. That change would allow the government to weigh in on the deal if the parties reach an agreement, said the report. It would require prior notification of any purchase of its shares above 10%.
Core industries include sectors such as aerospace, nuclear energy and rare earths. The law was designed to protect the country from security risks, such as the outflow of military technology, the report said.
- 7-Eleven is No. 1 on CSP’s 2024 Top 202 ranking of U.S. c-store chains by store count. Alimentation Couche-Tard is No. 2.
Seven & i is a global operator of convenience stores, superstores, supermarkets, specialty stores, foodservices, financial services and IT services. 7–Eleven International LLC franchises or licenses more than 44,000 stores in 19 countries and regions, including Australia, Cambodia, China (including Hong Kong/Macau, Taiwan and other areas), Denmark, India, Israel, Laos, Malaysia, Norway, Philippines, Singapore, South Korea, Sweden, Thailand and Vietnam. The brand also operates corporate or franchise stores in the United States, Canada, Mexico and Japan. Globally, the 7-Eleven trademark is represented in approximately 83,000 stores.
Irving, Texas-based 7-Eleven Inc. operates, franchises or licenses more than 83,000 convenience stores in 19 countries and regions, including more than 13,000 7-Eleven convenience stores in the United States. In addition to 7-Eleven c-stores, the company operates and franchises Speedway and Stripes c-stores and the Laredo Taco Company, Speedy Cafe and Raise the Roost Chicken and Biscuits restaurant brands..
Laval, Quebec-based Couche-Tard operates in 31 countries and territories, with more than 16,700 stores. Its network includes more than 7,100 stores in the United States under the Circle K and Holiday Stationstores banners, and approximately 2,100 in Canada under the Circle K and Couche-Tard banners. In Europe, under the Circle K and other banners, Couche-Tard operates a retail network in Scandinavia, Ireland, Poland, the Baltics and Russia with more than 2,700 stores and automated fuel stations. Through licensing agreements, more than 2,200 stores operate under the Circle K banner in 15 other countries and territories (Cambodia, Egypt, Guam, Guatemala, Honduras, Hong Kong, Indonesia, Jamaica, Macau, Mexico, Mongolia, New Zealand, Saudi Arabia, the United Arab Emirates and Vietnam). This brings Couche-Tard’s total worldwide network to approximately 14,400 stores.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.