Japanese Operator of 7-Eleven Mulls Takeover Offer From Canada's Alimentation Couche-Tard

By Megumi Fujikawa

TOKYO-- Seven & i Holdings, the Japanese operator of 7-Eleven convenience stores and other retail chains, is studying a takeover offer from Canadian convenience store operator Alimentation Couche-Tard.

The Japanese retail giant said Monday that it has set up a special committee of outside directors to examine the offer. The company said it would "carefully and comprehensively" analyze the offer and compare it with other options to improve the company's value.

Seven & i said it has yet to make a decision on whether it would accept or reject the deal from Alimentation Couche-Tard, or whether it would start talks with the Canadian company.

The Nikkei newspaper earlier reported the possible takeover offer. Following the report, Seven & i's share price rose sharply, ending the day 23% higher at 2,161 yen.

Seven & i has been trying to improve its profit margin in recent years by restructuring and focusing more on its convenience store business.

In its latest financial report, the Japanese retail giant said net profit dropped 49% from a year earlier for the three months ended May 31.

As of Friday's market close, Seven & i had a market capitalization of about 4.6 trillion yen, or $31.13 billion, according to data provider Quick.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

August 19, 2024 02:35 ET (06:35 GMT)

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