02:12 PM EDT, 08/19/2024 (MT Newswires) -- (Updates shares.)

Circle K operator Alimentation Couche-Tard Inc. ( ANCTF ) , a global player in convenience stores, confirmed Monday that it recently submitted a friendly, non-binding proposal to Seven & i Holdings, the Japanese owner of the 7-Eleven convenience chain.

The company in a statement said it is "focused on reaching a mutually agreeable transaction that benefits both companies' customers, employees, franchisees and shareholders".

It added: "There can be no certainty at this stage that any agreement or transaction will be reached. The company does not anticipate issuing any further public statements regarding discussions with Seven & i unless or until an agreement is reached."

This comes after Bloomberg News reported that Couche-Tard had made a proposal to take over much larger rival and 7-Eleven owner Seven & i Holdings Co., in what would be the biggest foreign takeover of a Japanese company. A merger would create a global network of roughly 100,000 convenience stores, the world's biggest, Bloomberg said.

Valued at the equivalent of US$31 billion before news of the offer emerged, Seven & i shares jumped 23% on Monday. Bloomberg cited it as saying the bid was preliminary and non-binding, without disclosing terms. A special committee of independent outside directors will make a "prompt, careful and comprehensive review of the proposal," Seven & i said in a statement.

Bloomberg noted that although Couche-Tard is smaller than Seven & i, with about 14,000 stores compared with more than 85,000 for the Japanese retailer, the Canadian company enjoys a bigger valuation of about US$58.5 billion.

Bloomberg said foreign takeovers of Japanese companies are extremely rare, but recent changes in guidelines for merger and acquisition proposals, and activist investors pushing companies to boost value - including at Seven & i - could boost the odds of a deal that would create a global convenience-store behemoth.

Couche-Tard shares were last seen down $1.50 to $82.07 on the Toronto Stock Exchange

Price: 82.05, Change: -1.52, Percent Change: -1.82