Alimentation Couche-Tard wants to take over the global convenience store chain 7-Eleven from its Japanese operator.
Meanwhile, Couche-Tard has also agreed to acquire US-based convenience store chain GetGo Café +Markets from US supermarket giant Giant Eagle for an undisclosed amount.
Couche-Tard, based in Laval, Quebec, has submitted a bid to acquire Tokyo-based Seven & i Holdings, which operates 85,000 convenience stores worldwide. Both companies confirmed the offer in separate press releases on Monday.
The companies did not disclose the amount of Couche-Tard’s offer. New York Times According to one report, Couche-Tard has offered to pay more than $38 billion. BNN Bloomberg estimated the bid at $31 billion and a BBC report said the offer was worth £29.2 billion.
Couche-Tard described the offer as a “non-binding, friendly proposal”.
“The company is committed to achieving a mutually acceptable transaction that will benefit both companies.
Customers, employees, franchisees and shareholders of the companies,” said Couche-Tard. “At this point in time, there is no certainty that an agreement or transaction will be reached.”
Seven & i said its board of directors had formed an independent committee of independent directors to review the proposal for Couche-Tard to acquire all outstanding shares of the Japanese company.
“Consistent with its commitment to act in the best interests of its shareholders and other stakeholders of the Company, the Special Committee intends to promptly, carefully and comprehensively review the proposal, the Company’s stand-alone plans and other alternatives to enhance shareholder value. A response will then be provided to (Couche-Tard),” Seven & i said.
“Neither the Board nor the Special Committee has made a decision at this time to accept or reject (Couch-Tard’s) proposal, to enter into discussions with (Couch-Tard) or to pursue an alternative transaction.”
Couche-Tard operates around 17,000 stores in 31 countries and territories under the Circle-K brand and other labels. The approximately 13,100 sales outlets also include petrol stations.
Seven & i also operates the popular US-based Speedway petrol station network.
Meanwhile, Couche-Tard said the company will use cash and/or existing credit lines to finance the purchase of GetGo from Pittsburgh-based Giant Eagle.
GetGo employs around 3,500 people and operates about 270 supermarkets and gas stations in Pennsylvania, Ohio, West Virginia, Maryland and Indiana.
“The more we learn about GetGo’s business, the clearer it becomes that it has built a strong and passionate customer base with high-quality stores where talented and dedicated teams work to deliver a great experience,” said Brian Hannasch, president and CEO of Couche-Tard, in a press release.
“We have great respect for the management and employees, as well as the great food and loyalty programs. We look forward to growing together as we learn from and continue to build on GetGo’s innovative approaches to serving its local customers and communities.”
Bill Artman, CEO of Giant Eagle, said the planned sale will allow the U.S. chain to focus on its core business of supermarkets and pharmacies.
The deal is expected to be completed in 2025.
