Alimentation Couche-Tard (TSX:ATD) is once again eyeing a potential acquisition of Seven & i Holdings, the parent company of 7-Eleven, in what could become one of the most significant deals in the global convenience store industry. With an ongoing management buyout attempt in Japan encountering internal disagreements, Couche-Tard may have a chance to reopen talks and push forward with its ambitions to expand further into Asia and beyond. Previously, it offered $47 billion for the business.
Couche-Tard already operates nearly 17,000 locations across 31 countries, generating approximately $73 billion in annual revenue. Despite its already expansive footprint across North America and Europe, the company has long viewed Asia as a key area for future growth. Bringing Seven & i into its portfolio would accelerate that goal while also bolstering its presence in the United States, where 7-Eleven holds a commanding position.
For investors, the potential upside is clear. Couche-Tard already trades at a reasonable 19 times earnings, supported by steady revenue growth and efficient operations. Acquiring Seven & i would not only expand Couche-Tard’s scale but could also unlock cost efficiencies, enhance purchasing power, and diversify revenue sources across established and emerging markets. Together, these advantages could significantly enhance long-term profitability.
Over the past five years, Couche-Tard’s share price has climbed over 65%, reflecting both strong operational execution and smart capital allocation. For investors looking to gain exposure to a well-run global retailer with a disciplined growth strategy and a strong history of integrating acquisitions, Couche-Tard’s renewed pursuit of Seven & i offers a potentially transformative growth opportunity. While the deal isn’t a guarantee to go through, buying the stock for its focus on acquisitions and long-term growth could continue to pay off.
