7-Eleven gets buyout offer from owner of Circle K

Simone Del Rosario

CAN FROSTERS AND SLURPEES COEXIST? WHAT ABOUT POLAR POPS AND BIG GULPS? WE MIGHT soon FIND OUT.

THE OWNER OF CIRCLE K WANTS TO BUY THE OWNER OF 7-ELEVEN. THE FORMER SENT A PRELIMINARY OFFER DESCRIBED AS “FRIENDLY” AND “NONBINDING.”

THOUGH ALIMENTATION COUCHE-TARD — THE PARENT COMPANY OF CIRCLE K – IS BASED IN CANADA AND SEVEN AND I – THE PARENT COMPANY OF 7-ELEVEN – IS BASED IN JAPAN — THESE ARE THE TWO BIGGEST CONVENIENCE STORE CHAINS IN THE U.S.

COUCHE-TARD OPERATES MORE THAN 16,000 CONVENIENCE STORES WORLDWIDE WITH MORE THAN 7,000 CIRCLE KS IN THE U.S.

AND SEVEN AND I HAS MORE THAN 85 THOUSAND STORES —  OVER 13 THOUSAND OF THEM ARE 7-ELEVEN STORES IN THE U-S.

SHARES OF SEVEN AND I VALUE ROSE 23 PERCENT on the news – VALUING THE COMPANY AT 38 BILLION DOLLARS – COUCHE-TARDE IS VALUED AROUND 58 BILLION – AND IS LOOKING to ACQUIRE ALL OF SEVEN AND I’S OUTSTANDING SHARES.

IF THE DEAL GOES THROUGH – IT COULD BECOME THE LARGEST-EVER FOREIGN-LED ACQUISITION OF A JAPANESE COMPANY.  

IT’S STILL VERY EARLY – SEVEN AND I CONFIRMED ON MONDAY IT RECEIVED THE PROPOSAL. THEY ISSUED A STATEMENT SAYING A SPECIAL COMMITTEE “INTENDS TO CONDUCT A PROMPT, CAREFUL AND COMPREHENSIVE REVIEW OF THE PROPOSAL.” THERE’S NO INDICATION OF WHETHER THEY INTEND TO ACCEPT OR REJECT.

BUT HOW BIG OF A DEAL IS THIS TO THE CONVENIENCE INDUSTRY?

JONATHAN MAZE – THE EDITOR IN CHIEF AT THE TRADE PUBLICATION RESTAURANT BUSINESS MAGAZINE – POSTED TO X, “THIS PROPOSAL IS LITERALLY THE SAME THING AS IF MCDONALD’S JUST PROPOSED TO BUY BURGER KING. CHECK THAT. IT’S AS IF STARBUCKS JUST PROPOSED TO TAKE OVER MCDONALD’S.”

WE DON’T YET KNOW THE VALUE OF THE OFFER – AND IT’S UNCLEAR WHEN A DECISION WILL BE MADE – BUT SURELY BOTH PARTIES – LIKE MOST CONVENIENCE STORES – WILL BE WORKING ON IT 24/7.