Circle K proposes to buy 7-Eleven chain for up to 47 billion USD

On October 9, 7-Eleven's parent company Seven & i Holdings confirmed that Alimentation Couche-Tard, the parent company of Circle K, has raised its acquisition offer.

The Canadian company has offered $47 billion, according to UPI. If successful, it would be the largest acquisition ever by a Japanese company abroad.

Previously, Bloomberg News first reported on Couche-Tard's proposed takeover bid of $38.5 billion, which was rejected as "too low."

In a statement about the incident, Seven & i said it would keep the negotiations confidential at Couche-Tard's request.

"The increased offer from ACT (Alimentation Couche-Tard) is much more attractive than the initial proposal. While there are still legal hurdles, the Seven & i board should consider whether the deal can go ahead," said Manoj Jain, co-founder of Hong Kong-based Maso Capital.

Shares of Seven & i rose nearly 12% after the news broke, suggesting some investors believe a deal is possible.

Last month, Seven & i said it would strengthen its value. The Nikkei reported that the company’s second-quarter profit fell 20% from a year earlier due to the impact of inflation on U.S. consumers.

Currently, overseas convenience store business accounts for more than 70% of Seven & i's revenue.

Japan recently designated its retail giant as "core" to national security, meaning the legal hurdles to taking over the company will be higher.