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A Canadian convenience store giant has its eyes on 7-Eleven.
Alimentation Couche-Tard, which runs more than 16,000 Circle K and Couche-Tard stores worldwide, made a takeover offer to Japan-based operator of Seven-Eleven, Seven & i Holdings SVNDY+0.58%.
Seven & i Holdings said Monday it received a “confidential, non-binding and preliminary proposal” from Alimentation Couche-Tard, which is based outside Montreal, to acquire “all outstanding shares” of the company.
The company formed a special committee to review the proposal led by Stephen Hayes Dacus, the chairperson of its Board of Directors.
“The Special Committee intends to conduct a prompt, careful and comprehensive review of the proposal, the Company’s stand-alone plans and other alternatives for enhancing corporate value,” Seven & i Holdings said in a statement.
The Japanese convenience store company did not provide specifics about the offer, including how much Alimentation Couche-Tard offered for the takeover. The company has an estimated market value of $38 billion.
Japan has long been opposed to foreign takeovers, but just last year changed its merger and acquisition policies and now advises companies to seriously consider foreign takeover offers that benefit shareholders, The New York Times reported.
Shares of Seven & i surged 23% in Tokyo’s market upon news of the takeover offer. The company was formed in 2005 after 7-Eleven became entirely owned by Japanese grocery chain Ito-Yokado, which had acquired a 70% stake in the company in 1991.