Battle for 7-Eleven intensifies as Japanese company enters the fray

The proposed acquisition of Seven & i Holdings by Canadian firm Alimentation Couche-Tard first surfaced last year, sending shockwaves through Japan. Such a move is unprecedented, as major Japanese corporations are typically the acquirers, not the targets, of foreign takeovers.

On August 19, 2024, Seven & i Holdings became the target of another acquisition bid. Alimentation Couche-Tard, which operates over 17,000 convenience stores across 30 countries, has submitted an offer to acquire the company.

Seven & i confirmed that Alimentation Couche-Tard has proposed a full acquisition, with the deal potentially valued at ¥5.63 trillion (approximately US$38.4 billion). If successful, this would mark the largest foreign acquisition of a Japanese company and one of the biggest cross-border deals in history.

Alimentation Couche-Tard, listed on the Toronto Stock Exchange with a market capitalisation of over C$80 billion (US$55.426 billion), is preparing to merge with Japan’s Seven & i. Combined, their latest fiscal year sales — Couche-Tard’s US$69.2 billion and Seven & i’s ¥11 trillion ( US$71.123 billion as of February 2024) — would exceed ¥20 trillion (US$129.317 billion).

Reports indicate that Alimentation Couche-Tard had previously attempted to acquire Seven & i in 2020 and also competed with them in the acquisition of US fuel chain Speedway.

7-Eleven’s growth in Thailand

Thirty-four years ago, traditional mom-and-pop stores dominated Thai retail, but the shift toward modern convenience stores was inevitable. Recognising this trend, Dhanin Chearavanont, chairman of CP Group, saw an opportunity to bring the 7-Eleven franchise to Thailand.

Negotiating with 7-Eleven’s parent company was not easy, as Thailand was initially perceived as having low purchasing power. However, CP strategically highlighted Thailand’s lower operating costs compared to the US and invited American executives to experience the local market firsthand. This persuaded 7-Eleven to grant CP the franchise.

Thailand’s first 7-Eleven store opened on June 1, 1989, at the corner of Patpong Road. Although it initially faced losses due to consumers’ unfamiliarity with the convenience store concept, CP studied strategies from the US and Japan and adapted them to Thai consumer behaviour until it successfully turned the situation around.

The growth of 7-Eleven in Thailand did not occur simply because it was a 24-hour convenience store, but because CP implemented strategies that understood consumer behaviour, such as:

• 1988-1989: Established CP RAM Co Ltd to produce frozen foods and bakery products to supply 7-Eleven.
• 1991: Opened up for Business Partners, allowing individuals to operate 7-Eleven stores under a franchise system.
• 1994: Launched counter service, enabling customers to pay for various services at 7-Eleven stores.
• 2002: The phrase “Would you like to add siu mai or steamed buns?” became a part of the sales strategy.
• 2003: Listed on the Stock Exchange of Thailand under the name CPALL.
• 2007: Launched Panyapiwat Institute of Management to create personnel with retail skills.
• 2017: Opened the 10,000th store.
• 2021: Opened the 13,000th store.
• 2022: Achieved annual revenue of over 300 billion baht from 7-Eleven.