Alimentation Couche-Tard Inc. (ACT), the parent company of the Circle K convenience-store brand, has submitted a “friendly,” nonbinding proposal to Seven & i Holdings Co. Ltd., the parent company of 7-Eleven Inc., to acquire all outstanding shares of the company. Seven & i has confirmed that it has received the confidential, nonbinding and preliminary acquisition proposal from Couche-Tard.
“The company is focused on reaching a mutually agreeable transaction that benefits both companies' customers, employees, franchisees and shareholders,” Couche-Tard said in a statement. “There can be no certainty at this stage that any agreement or transaction will be reached. The company does not anticipate issuing any further public statements regarding discussions with Seven & i unless or until an agreement is reached.”
The Seven & i board of directors has formed a special committee, comprised solely of independent outside directors, led by Stephen Hayes Dacus as chairperson, to review the proposal, the company said.
“Consistent with its obligation to act in the best interest of its shareholders and other stakeholders of the company, the special committee intends to conduct a prompt, careful and comprehensive review of the proposal, the company’s standalone plans and other alternatives for enhancing corporate value, after which a response will be made to ACT.
“Neither the board of directors nor the special committee has made any determination at this time to either accept or reject the proposal from ACT, to enter into discussions with ACT or to pursue any alternative transaction.
“The company will promptly announce when the company decides or has matters to be disclosed.”
Irving, Texas-based 7-Eleven operates, franchises or licenses more than 83,000 convenience stores in 19 countries and regions, including more than 13,000 7-Eleven convenience stores in the United States. In addition to 7-Eleven C-stores, the company operates and franchises Speedway and Stripes C-stores and the Laredo Taco Company, Speedy Cafe and Raise the Roost Chicken and Biscuits restaurant brands.Laval, Quebec-based Couche-Tard operates in 29 countries and territories, with more than 16,700 convenience stores. Its network includes more than 7,100 C-stores in the United States, primarily under the Circle K banner.
This story was originally featured on CSP Daily News, a sister publication of Nation'’ Restaurant News.
