Japan's Seven & i Receives Takeover Offer from Alimentation Couche-Tard

Japan's Seven & i Holdings, the parent company of 7-Eleven convenience stores, has reportedly received a preliminary takeover offer from Canadian firm Alimentation Couche-Tard. This potential acquisition could mark the largest purchase of a Japanese company by a foreign entity, surpassing the 2018 buyout of Toshiba's memory chip business. The discussions are still in the early stages, according to an anonymous source familiar with the negotiations. The interest from Couche-Tard highlights a growing trend of foreign investment in Japan, which has become increasingly attractive to investors due to recent corporate governance reforms. Duncan Clark, chairman of investment advisory firm BDA, noted that the influx of financial institutions into Japan reflects a renewed confidence in the market. The Nikkei index has seen significant gains, reaching record highs, as investors respond positively to these governance changes. Manoj Jain, co-founder of Maso Capital, emphasized that the appeal of Japanese assets is likely to continue, driven by underlying asset values and opportunities for efficiency improvements. Seven & i has faced pressure from activist investors to streamline its operations and focus on its core convenience store business, particularly the 7-Eleven brand. Alimentation Couche-Tard, which has expanded globally since its inception in 1980, has a history of acquisitions, including a recent $3.3 billion purchase of European petrol stations. The outcome of this potential deal remains uncertain, but it follows a competitive bidding history between the two companies, including a previous rivalry over the U.S. gas station chain Speedway.