After the failed attempt to take over Carrefour in 2021, the US$38 billion offer from North American retailer Couche Tard (owner of Circle K stores, sales of US$69.3 billion in the year to the end of April 2024, down 3.6%) has not convinced 7/Eleven. The convenience store specialist, “disappointed [by Seven & i Holdings’] decision not to enter into friendly discussions”, nevertheless intends to continue efforts to buy 7-Eleven. On September 25, 2024, the Caisse de Dépôt et de Placement du Québec (CDPQ), already a 3.5% shareholder in Couche Tard, stated that it “could contribute” to raising funds required for the acquisition. This acquisition would be financed by US$10 billion in cash, plus debt and company shares.
To remember: Acquiring the subsidiary of Seven&i Holdings (2023 sales of US$127 billion, down 2.9%) would enable Couche Tard to secure a position in the U.S.A. Combined, the two retailers would control 13% of the convenience market. In Japan, where 7/Eleven is largely franchised, the chain’s operating margin reached 27% last year, compared with 3.5% internationally (mainly in the U.S.A.).