Circle K owner Alimentation Couche-Tard has offered a “friendly proposal” to acquire the Japanese operator of 7-Eleven in a move that could mark major consolidation of the global convenience channel. If successful, the combined entity would become one of the largest retail businesses in the world.
Alimentation Couche-Tard, which owns more than 16,000 Couche-Tard and Circle K stores across North America and Europe, is looking to acquire Seven & i Holdings, which operates 85,000 stores in Asia and the U.S. Seven & i Holdings has established a committee of independent directors to review the offer, according to the New York Times.
Couche-Tard also approached Seven & i about a possible deal in 2020, the Times reported, citing Japanese media.
The offer comes amid an environment where retail consolidation is a hot topic. Last month, Kroger and Albertsons agreed to put their $23.6 billion merger on hold as Colorado regulators seek to halt the delta entirely.
U.S. VP and presidential candidate Kamala Harris has also called for tougher antitrust enforcement in the food industry. In a speech last week, she said the Kroger/Albertsons deal was likely to drive up food prices for consumers.
It’s unclear what say, if any, the U.S. government can have in a Canada-Japan business deal, even though the deal would have major implications for the convenience channel in the U.S.
Year-to-date through July 14, beer dollar sales at c-stores have declined -1%, to $13.642 billion, and volume (measured in case sales) has declined -3.3%, compared to the same period last year, according to market research firm Circana.
Imports are the largest segment, with dollar sales of $3.665 billion, followed by domestic premium ($3.419 billion), domestic sub-premium ($1.759 billion), flavored malt beverages ($1.661 billion), domestic super premium ($1.293 billion), hard seltzer ($881 million), craft ($856 million), cider ($76.2 million) and non-alcoholic ($28.8 million).
Jessica Infante contributed to this report.