A Canadian convenience store giant who owns Circle K convenience stores, has made a takeover bid for Seven & I - believed to be worth $40 billion USD.
👉 Background: 7-Eleven, formerly known as Tote'm Stores, was first set up in Dallas Texas in 1928. By the 19990's, a Japanese business called Seven & I Holdings acquired 7-Eleven in the US and expanded to 85,000 stores globally.
👉 What happened: Now, Alimentation Couche-Tard, a Canadian convenience store giant who owns Circle K convenience stores, has made a takeover bid for Seven & I - believed to be worth $40 billion USD.
👉 What else: If this takeover goes ahead, it would be the biggest-ever foreign buyout of a Japanese company and it would be a major test for Japan’s new takeover rules.
💡One small step for 7-Eleven, one giant leap for Japanese takeovers.
💡In the past, Japanese companies were known for prioritising stability of a company over maximising shareholder value. But, last year, the Japanese government rewrote its guidelines for foreign takeover proposals with the hope that it could stimulate their economy.
💡And as a result of these new guidelines, it’s harder for Japanese companies to ignore takeover offers without considering the benefit to shareholders, just like this whopper deal for Seven & I which saw its share price jump more than 20% off the back of the news.
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