7-Eleven Owner Explores Store Sell-Offs Amid Merger Talks with Couche-Tard

TOKYO – The Japanese owner of 7-Eleven, Seven & i Holdings, announced Monday that it would jointly explore potential store sell-offs with Canadian firm Alimentation Couche-Tard to address antitrust concerns as part of ongoing merger discussions.

This decision follows a series of measures the company implemented to counter Couche-Tard’s recent takeover bid, which has been met with skepticism by the Japanese retail giant. Seven & i, which has wholly owned 7-Eleven since 2005, is seeking to determine how a merger might be structured to satisfy regulatory requirements.

In a statement, Seven & i confirmed that joint outreach efforts by financial advisors to identify potential buyers for select stores have commenced. The objective is to map out the viability of a divestiture process, outlining the operational and financial characteristics of stores that may need to be sold.

“This would provide some insight into the prospects of success along terms that have a reasonable likelihood of satisfying U.S. antitrust regulators,” the statement read. “We believe we can make progress toward determining whether a credible and actionable remedy and divestiture package can be achieved.”

The announcement comes just days after Seven & i revealed plans for a significant share buyback totaling two trillion yen (approximately $13.2 billion) and the introduction of an initial public offering for its U.S. operations.

Couche-Tard had proposed an initial offer of nearly $40 billion last year but was rebuffed by Seven & i, which argued the bid grossly undervalued its business and faced potential regulatory hurdles. More recently, a revised proposal reportedly raised to about $47 billion was also rejected.

If the merger were to proceed, it would be the largest foreign acquisition of a Japanese company, combining the operations of 7-Eleven and Circle K into a formidable global convenience store entity. Both companies together represent about 20,000 locations within the U.S. convenience store market.

Stephen Dacus, who has recently been appointed as Seven & i’s first foreign CEO, is navigating these complex discussions. Couche-Tard, which began as a single store in Quebec in 1980, now operates nearly 17,000 convenience stores globally, including the Circle K chain.

“We believe there is a clear path to obtaining regulatory approvals,” Couche-Tard stated. “While we are frustrated with the limited engagement from Seven & i, we continue to seek a transaction that would benefit both parties.”

Despite the proactive measures being employed, analysts are wary of potential antitrust issues. Roy Larke, co-founder of JapanConsuming, noted, “I think Seven & i still plans to fight what is in practicality a hostile takeover bid from ACT. The antitrust considerations raised by Seven & i are likely genuine problems and may prove to be a significant barrier.”

Approximately 25% of 7-Eleven outlets are located in Japan, where they provide a variety of products ranging from fresh rice balls to concert tickets. The chain remains an integral part of Japanese daily life, though sales have shown signs of decline in recent years.

Analysts suggest that the negotiations, aimed at addressing divestiture and regulatory concerns, may ultimately determine the trajectory of this significant corporate maneuver. Future developments in this high-stakes saga are expected as both companies strive for a favorable resolution.