7-Eleven Gets Buyout Offer From Canadian Owner of Circle K

A Canadian convenience store giant wants to buy the Japanese company that operates 7-Eleven in a deal that would create one of the world’s largest retail groups.

Japan’s Seven & I Holdings said Monday that it had received a preliminary takeover bid from Alimentation Couche-Tard.

The specifics of the proposal — including how much money was offered — have not been disclosed, Seven & I said in a statement that it had established a committee of independent directors to review the offer. Independent directors are members of the board who are not executives of the company.

Alimentation Couche-Tard operates more that 16,000 Couche-Tard and Circle K stores across North America and Europe. Seven & I sits atop a vast network of 85,000 stores, primarily in Asia and the United States.

Couche-Tard aims to acquire all of Seven & I’s outstanding shares, according to Seven & I. With Seven & I’s market value exceeding $38 billion, the deal, if approved, could potentially become the largest foreign-led acquisition of a Japanese company.

Couche-Tard did not immediately respond to a request for comment. Any deal would be subject to approval by Canadian regulators.

How Seven & I executives and Japanese officials respond in the months ahead to the unsolicited bid may test a recent wave of reforms in Japan intended to pressure companies to take steps to increase the value of shareholders’ investments.

Japan has been known for generations for its fortresslike companies that tend to rebuff foreign takeover offers, even if doing so goes against the interests of shareholders. According to Japanese media, Couche-Tard also approached Seven & i about a potential takeover in 2020.

Last year, Japan updated its merger and acquisition guidelines to