A major Canadian retail company has made a significant offer to acquire 7-Eleven, a well-known convenience store chain. This offer, valued at 38 billion dollars, which is approximately 29. 2 billion pounds, could potentially mark the largest foreign acquisition in Canadian history. Following the announcement of this buyout bid, shares in 7-Eleven's parent company, Seven & i Holdings, surged by more than 20%. This increase indicates that investors believe the company is now worth more due to the proposed acquisition. 7-Eleven is a staple in many regions, particularly in Asia and North America, where it has established a strong presence. nnThe Canadian company, Alimentation Couche-Tard, which operates the Circle K brand, made this proposal on a Monday. If the acquisition goes through, Couche-Tard's footprint in the United States and Canada would more than double, expanding to over 20,000 locations. The offer of 5. 6 trillion Japanese yen represents a significant premium over 7-Eleven's stock price prior to the bid. Couche-Tard has stated that they have submitted a 'friendly, non-binding proposal' to purchase the retail chain, but they also noted that there is no guarantee that the deal will be finalized. The company emphasized its commitment to reaching a mutually beneficial agreement that would serve the interests of customers, employees, franchisees, and shareholders alike. nnIn response to the proposal, Tokyo-based Seven & i Holdings has established a special committee to evaluate the offer. They have confirmed that they received a confidential, non-binding, and preliminary proposal from Couche-Tard to acquire all outstanding shares of the company. The special committee intends to conduct a thorough and careful review of the proposal to determine its viability. Should the deal be approved, it may encounter scrutiny from competition regulators in North America. Currently, 7-Eleven operates over 13,000 stores in the US and Canada, while Couche-Tard has more than 9,000 locations. In recent years, activist investors have urged Seven & i to divest some of its assets to concentrate more on the 7-Eleven brand. This acquisition proposal also comes in the wake of the central bank's decision to increase borrowing costs, which could impact the retail sector. 7-Eleven was introduced to Japan in 1974 by the retail magnate Masatoshi Ito, who is credited with transforming the convenience store chain into a global powerhouse. Today, 7-Eleven boasts approximately 85,000 stores across 20 countries and territories, with a significant presence in Asia. Alimentation Couche-Tard, based in Quebec, is listed on the Toronto Stock Exchange and operates around 17,000 stores in over 30 countries and territories under the Circle K and Couche-Tard brands, with a market valuation of about 80 billion Canadian dollars.
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