"Dream - Alimentation Couche-Tard (ACT), the parent company of Circle K from Canada, has submitted a bid worth US$ 38 billion or around Rp 588 trillion to acquire 7-Eleven. If everything goes smoothly, this transaction will become the largest foreign company acquisition in Japan. The 7-Eleven franchise is a convenience store business from the United States, owned by Seven & I Holdings Co., a Japanese company, since 2005. Operating 24 hours, the largest market share of 7-Eleven currently is in the United States and Japan."

Of course, the news about ACT targeting 7-Eleven brings a new chapter for foreign companies in Japan. ACT's offer was announced on Monday, August 19, 2024, after the Japanese stock market experienced a drastic decline earlier this month. Although ACT's offer of 5.6 trillion yen is only slightly higher than the stock price of 7-Eleven before the offer, the company described its proposal as 'friendly and non-binding.' However, ACT revealed that there is still no certainty whether this deal will materialize.

"Meanwhile, Seven & i Holdings, the company that owns 7-Eleven, has formed a special committee to evaluate the offer. They confirmed that they have received a confidential proposal from ACT to purchase all outstanding shares. "The special committee will conduct a quick, careful, and thorough review of this proposal," said Seven & i Holdings."

"If this acquisition goes ahead, ACT is likely to face challenges from competition regulators in North America. The 7-Eleven network operates more than 13,000 stores in the US and Canada, while Couche-Tard has only about 9,000 stores. In recent years, it turns out that a number of activist investors have urged Seven & i Holdings to sell off some of its assets and focus the company on the 7-Eleven brand. This proposal came after the Japanese stock market experienced a significant decline followed by a sharp surge after the central bank's decision to raise borrowing costs."

"Currently, 7-Eleven has 85,000 stores in 20 countries and regions, with the widest market reach in Asia. ACT, based in Quebec and listed on the Toronto Stock Exchange, operates approximately 17,000 stores in over 30 countries in North America, Europe, and Asia under the Circle K and Couche-Tard brands. ACT's market capitalization is estimated to reach US$ 58.2 billion or Rp 901 trillion."