Proposed 7-Eleven Buyout Deal Faces Antitrust Concerns, Analysts Say

Canada’s Alimentation Couche-Tard’s proposed acquisition of Japanese rival Seven & i Holdings Co., the owner of 7-Eleven, is expected to draw significant antitrust scrutiny, particularly in the U.S., where both 7-Eleven and Circle K dominate the convenience store market. According to retail analyst Bryan Gildenberg, the Federal Trade Commission (FTC) will likely impose strict conditions on the merger due to potential market overlap, especially in states like Florida and Texas.

Couche-Tard confirmed making a “friendly, non-binding proposal” to acquire Seven & i Holdings, although the offer’s value remains undisclosed. A successful merger would result in the combined entity controlling 12.3% of the U.S. convenience store market, significantly outpacing its closest competitor, Casey’s, which holds a 1.7% share.

Japanese regulators are also expected to review the deal carefully, as it would represent the largest foreign takeover of a Japanese company. Gildenberg notes that Japan’s convenience store market offers significant opportunities for global expansion, as its retail landscape is predominantly domestic.

Couche-Tard, already a major global player with 16,700 stores, seeks to expand further into food services, as evidenced by its recent deal to acquire U.S. company GetGo. The acquisition of Seven & i Holdings would bolster its presence across international markets and enhance its competitive edge in food services, which is a strength of both GetGo and 7-Eleven.