Circle K and 7-Eleven plan to sell 2,000 US stores

Alimentation Couche-Tard from Canada and Seven & i from Japan are moving to negotiate the sale of about 2,000 stores in the U.S. This comes as part of Couche-Tard's $47 billion bid to take over Seven & i, the owner of the 7-Eleven brand. The companies plan to start talks with private equity firms soon. Seven & i is seeking guarantees that any sale will address competition concerns before agreeing to deeper discussions. If the deal goes through, Couche-Tard and Seven & i would become leaders in the U.S. convenience store market. Seven & i has resisted Couche-Tard's offers, believing it can create more value independently. The company is initiating restructuring efforts, including a significant stock buyback and the appointment of its first foreign CEO, Stephen Dacus. However, despite these changes, Seven & i's share price has decreased by 10% this year. The two companies are looking for buyers for nearly 2,000 of their potential U.S. stores to meet regulatory demands. They have reached out to private equity groups, with interested parties expected to respond by month's end. There are complications ahead. After finding buyers, they will need to address operational details, like management and supply chains. Some investors are unsure whether to support the acquisition or to trust Dacus's restructuring plan, which may take longer to yield benefits. While Seven & i prepares for an IPO of its North American business in 2026, the sale of stores could be a vital step. There is skepticism about whether Seven & i’s board will agree to advance talks with Couche-Tard, as decision-making in Japan often considers broader factors beyond just price. The discussions around which stores to sell have been ongoing for months, with both sides debating how to handle competition issues and deal terms. Last year, they exchanged initial agreements, but differences remained regarding the necessary antitrust remedies and penalties if the deal fell through.