In a surprising development, Canadian company Alimentation Couche-Tard has made an enticing buyout offer to Seven & i Holdings, the owner of North Texas-based 7-Eleven convenience stores and several other retail chains. The bid has prompted the formation of a special committee consisting of external directors to thoroughly review the offer, although no further details have been disclosed at this time.

Upon hearing the news, investors displayed their enthusiasm for the potential takeover bid, causing shares of Seven & i Holdings to soar by a remarkable 23% in Tokyo. This significant increase represents the largest single-day jump in the company's history, highlighting the magnitude of the proposal.

Neil Saunders, the managing director of GlobalData, called the potential deal a monumental opportunity, stating that 7-Eleven currently holds the largest market share – 14.5% – in the US convenience retail store space as of 2023. In comparison, the banners operated by Alimentation Couche-Tard possess a market share of only 4.6%. Merging the two companies would create an entity that commands nearly one-fifth of the market, consolidating their influence significantly.

It is worth noting that Seven & i Holdings has been actively streamlining its operations, as evidenced by its recent sale of department store chain Sogo & Seibu Co. to a US investment fund. In response to the buyout offer, the company's board, alongside the newly formed special committee, remains undecided on whether to accept or reject the bid, engage in discussions with Couche-Tard, or explore alternative options. The company has committed to publicly announcing its decision when it is made.

Alimentation Couche-Tard operates multiple convenience store chains under various brand names such as Couche-Tard, Circle K, and On the Run. With more than 14,000 stores across Canada, Ireland, Mexico, Russia, Poland, Norway, Sweden, Denmark, and the United States, the company has established a significant presence in the industry. Given the potential implications of this buyout attempt, industry analysts anticipate scrutiny from US regulators. While competition concerns may not be extensive due to convenience stores being part of a broader food and groceries market, the higher levels of concentration are likely to attract the attention of the Federal Trade Commission (FTC). Given the current climate surrounding consolidation and competition in the food and essentials sector, the deal is not expected to be a straightforward one.

7-Eleven, which originated as the Southland Corporation in Dallas, witnessed a change in ownership during the mid-2000s when Seven & i Holdings took over the company. Now, faced with Alimentation Couche-Tard's ambitious proposal, 7-Eleven finds itself at the center of a potential acquisition that could reshape the convenience retail landscape in the United States.