You’d be forgiven if you thought differently, but Alimentation Couche-Tard’s mission to take control of 7-Eleven’s late-night snack empire is still very much alive.
What happened: A separate US$58 billion bid to take Seven & i Holdings private has hit a wall after a key financial backer, Itochu, bowed out of the proposal. The setback is expected to put wind in the sails of Couche-Tard’s takeover pursuit.
Catch-up: Québec’s Couche-Tard — best known for its chain of 14,000 Circle K stores — has been aggressively pursuing a takeover of the financially challenged Seven & i since August of last year. The company’s latest bid in October was for US$47 billion.
- Seven & i’s founding family hasn’t been keen on the takeover bid, despite pressure from shareholders, and instead moved to take control of the company itself.
Why it matters: The door has suddenly swung open for Couche-Tard to get a deal done. Facing few alternatives, the family behind the convenience store conglomerate could be left with no choice but to take the Canadian company’s offer seriously.
Big picture: If a takeover does happen, Couche Tard — already one of Canada’s most valuable retailers — would immediately be crowned the world’s biggest convenience store operator, taking ownership of about 100,000 locations worldwide.—LA