In a move that could potentially create one of the world's largest retail groups, Canadian convenience store chain Alimentation Couche-Tard has made a preliminary takeover bid for Seven & i Holdings, the Japanese company that operates the renowned 7-Eleven convenience stores. The bid, the specifics of which have not been disclosed, signifies Alimentation Couche-Tard's ambition to expand its reach globally.

Seven & i Holdings, which boasts a vast network of 85,000 stores primarily located in Asia and the United States, confirmed the receipt of the bid on Monday. The company announced that an independent committee of directors would review the offer before making any decisions. Such committees consist of board members who are not affiliated with the company's executives, thereby ensuring unbiased evaluation.

Alimentation Couche-Tard, operating over 16,000 Couche-Tard and Circle K stores across North America and Europe, aims to acquire all outstanding shares of Seven & i Holdings. With the market value of Seven & i Holdings exceeding $38 billion, this potential deal, if approved, could surpass previous foreign-led acquisitions of Japanese companies.

While Alimentation Couche-Tard is yet to provide any official comment on the matter, the proposed acquisition would still require approval from Canadian regulators before it can proceed. This development carries broader significance as it tests recent reforms in Japan that push companies to prioritize shareholder value and consider legitimate takeover offers.

The bid from Alimentation Couche-Tard is not the first of its kind. In 2020, reports suggest that the Canadian chain had previously approached Seven & i Holdings regarding a potential takeover. However, with Japan recently updating its merger and acquisition guidelines to foster fairness and transparency for shareholders, the response from Seven & i executives and Japanese officials is anticipated to have a significant impact on the outcome.

Industry analysts are eagerly awaiting further details of the bid, as it will determine the deal's chances of success. While Seven & i is predominantly owned by Japanese investors, a compelling offer could sway institutional investors to consider selling their shares.

News of the bid has left a noteworthy impact on the stock market, as shares in Seven & i surged by over 22 percent in response. The future developments surrounding this potential acquisition will be closely watched, as it could reshape the global retail landscape.