Alimentation Couche-Tard Launches Persuasive Push for Seven & i in Tokyo

Strategic Talks Intensify for $47 Billion Acquisition / Reuters

Alimentation CoucheTard, the Canadian retail giant behind Circle K, is stepping up its pursuit of Seven & i Holdings, the Japanese powerhouse operating 7Eleven stores globally, with a highprofile visit to Tokyo. This move underscores the company’s determination to secure a $47 billion acquisition deal, which, if successful, would mark the largest foreign buyout in Japan’s history. The visit comes as CoucheTard seeks to alleviate antitrust concerns raised by Seven & i, particularly in the United States, where the two firms dominate the convenience store market with a combined footprint of roughly 20,000 locations. To advance negotiations, CoucheTard’s leadership is engaging directly with Seven & i counterparts and has scheduled its first Tokyo press conference since unveiling the bid in August 2024, set for Thursday, March 13, 2025, signaling a bold effort to sway both the company and a Japanese public wary of losing a national icon to foreign ownership.

CoucheTard’s charm offensive follows months of persistent courtship, despite initial resistance from Seven & i, which viewed earlier offers as undervaluing its worth and flagged substantial regulatory obstacles. The Canadian firm has sweetened its proposal, raising the bid to $47 billion in October 2024 from an original $39 billion, reflecting its commitment to acquiring Seven & i’s sprawling network of over 85,000 stores worldwide. This strategic acquisition aims to bolster CoucheTard’s global presence, already spanning 29 countries with more than 16,700 locations, by integrating 7Eleven’s iconic brand. However, the path to this monumental merger hinges on resolving U.S. regulatory challenges, prompting both companies to explore divestment options for overlapping stores. CoucheTard asserts there is a viable route to satisfy regulators, expressing frustration over Seven & i’s hesitancy to fully engage, while Seven & i’s newly appointed CEO, Stephen Dacus, maintains that significant hurdles persist, casting doubt on the deal’s feasibility.

The antitrust issue looms large, given the companies’ dominant positions in the U.S. convenience store sector. To address this, CoucheTard and Seven & i have initiated talks to divest approximately 2,000 stores, a proactive step aimed at preempting objections from U.S. authorities. This collaborative effort to identify credible buyers and map out a divestiture plan before finalizing a merger agreement is a rare approach in corporate dealmaking. Experts note that such preemptive discussions can streamline regulatory approval and minimize surprises, though Seven & i remains cautious, wary of committing to a deal that could falter if buyers for the divested assets prove elusive. This strategic dialogue underscores CoucheTard’s determination to present a compelling case, blending financial incentives with practical solutions, as it seeks to win over Seven & i’s leadership and shareholders.

The Tokyo visit amplifies these efforts, serving as both a negotiation platform and a public relations campaign. CoucheTard’s press conference will likely highlight progress in addressing antitrust concerns and reaffirm its vision for a combined entity that enhances value for stakeholders. For Japan, the stakes are cultural as well as economic, with 7Eleven deeply embedded as a national asset. Public skepticism toward a foreign takeover adds pressure on CoucheTard to demonstrate respect for local interests while outlining the benefits of its proposal. Meanwhile, Seven & i’s leadership, under Dacus, who assumed the role in early March 2025, is balancing these talks with alternative strategies, including a potential 2026 IPO for its North American operations, signaling a multifaceted approach to unlocking shareholder value amid the acquisition pressure.

Delving deeper into the divestment strategy, CoucheTard has taken an unusually forwardthinking stance by engaging third parties to explore potential buyers for the U.S. stores, aiming to present a robust package to regulators. Seven & i, while participating, has voiced concerns about the risks of proceeding without a finalized agreement, fearing prolonged uncertainty if the deal stalls. This tension highlights the complexity of aligning their interests, with CoucheTard pushing for swift resolution and Seven & i advocating a more measured pace. The outcome of these discussions, likely to be clarified postpress conference, will be pivotal in determining whether this ambitious acquisition moves forward or falters under regulatory and strategic strains.

Adding context, CoucheTard’s pursuit gained momentum after a rival $58 billion management buyout led by Seven & i’s founding family collapsed, leaving the Canadian firm as the frontrunner. The sweetened $47 billion offer reflects not only financial commitment but also an understanding of the strategic synergies at play, merging two convenience store titans to create a global leader. For investors and analysts, the Tokyo visit and ensuing announcements will offer critical insights into the deal’s trajectory, particularly how the companies navigate the U.S. Federal Trade Commission’s scrutiny and Japan’s protective stance toward its corporate giants. The interplay of these factors, financial, regulatory, and cultural, positions this acquisition as a landmark case in crossborder mergers.

Ultimately, CoucheTard’s Tokyo initiative reflects a calculated blend of diplomacy and determination, aiming to transform skepticism into support. As the press conference approaches, stakeholders await updates on the divestment talks and regulatory outlook, which will shape the narrative of this highstakes acquisition. Whether this effort bridges the gap between the two companies or underscores irreconcilable differences, it remains a defining moment in the evolving saga of Alimentation CoucheTard’s bid for Seven & i Holdings, with ripple effects for the global retail landscape.