Alimentation Couche-Tard (ACT), the parent company of Circle K, has intensified its acquisition efforts with Seven & i Holdings, the owner of 7-Eleven, with a non-disclosure agreement (NDA).
The move marks a significant step forward in negotiations, as both parties have consented to further transaction talks, due diligence facilitation and joint regulatory strategy development, according to a statement from Loblaw.
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While these developments indicate progress, there is no certainty that they will culminate in a final deal.
Couche-Tard president and CEO Alex Miller stated: “We appreciate the special committee [SC] of Seven & i engaging in substantive discussions regarding our proposal and providing access to diligence. We look forward to working collaboratively with Seven & i in the interests of all stakeholders.”
Seven & i has kept the specifics of the NDA under wraps but disclosed that it includes a “standstill” provision to shield against unsolicited takeover attempts.
The NDA will enable ACT and Seven & i to exchange additional information beyond what is already being shared with potential buyers for the divestiture package.
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By GlobalDataSeven & i board of directors independent special committee chair Paul Yonamine stated: “The execution of the NDA is a positive step in the constructive engagement process with ACT.”
Two strategic avenues are being explored: one involves close collaboration with ACT to identify a feasible divestiture path for a potential sale, and the other focuses on an independent strategy emphasising management initiatives under Stephen Hayes Dacus’s leadership as CEO.
“As we have said previously, we caution that it remains the case that it is critical for the SC to assess if there is a path to a viable divestiture by identifying potential buyers and determining their ability to stand up a real, standalone business that will preserve competition and satisfy regulators. That work is ongoing. Unlocking significant value for shareholders and other stakeholders remains Seven & i’s top priority,” Yonamine stated.
ACT proposed the acquisition of 7&i for $47bn in October 2024, after its initial offer, which pegged shares at $14.86 each.
In April 2025, Seven & i and ACT agreed to evaluate the practicality of a divestment plan by defining the operational, administrative and financial characteristics of the stores designated for sale and identifying potential buyers.
