Circle K owner Couche-Tard, a smaller rival in Canada with humble beginnings, is betting that it can take the business further, confirming earlier this week that it made a preliminary proposal to buy out Seven & i. Although details are still scant, such as the price, financing or structure of any potential deal, the approach follows attempts by activist investor ValueAct Capital Management LP to focus Seven & i’s management on global expansion of the 7-Eleven concept.
Anyone who’s stepped into a 7-Eleven in Japan to grab a quick snack or withdraw cash from the ATM will understand why Alimentation Couche-Tard would want to pay billions to acquire the business. It’s clean, service is efficient and the food is good.
Like cars, electronics and rail travel, the convenience-store chain is a western invention that the Japanese have refined to near-perfection. After bringing the concept to the island nation, the stores have transformed Seven & i Holdings Co. into a JPY5 trillion ($45 billion) global retailer.
