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A non-disclosure agreement has been reached between 7-Eleven owner Seven & i and the owner of Circle K, Alimentation Couche-Tard, signaling the potential final steps of a proposed mega-merger between the two convenience store giants.
If the deal is completed, it will be worth nearly $50 billion.
By signing the NDA, the two parties can progress with transaction discussions, facilitate due diligence, and collaborate on plans to engage with regulators.
According to Forbes, Paul Yonamine, chair of Japanese company Seven & i’s special committee looking into the takeover proposal, issued a statement saying, “The execution of the NDA is a positive step in the constructive engagement process with Couche-Tard.”
He added, “We remain committed to pursuing two parallel paths to ensure that value for shareholders and other stakeholders is maximized.”
7-Eleven is owned by the Japanese-based company, while ACT is Canadian-owned with net earnings of around $641.4 million in its most recent fiscal quarter.
In a statement on the proposed merger, ACT said, “For many years, we have firmly believed that there is a unique strategic fit between Couche-Tard and Seven & i, and that we can achieve significantly more together than each of our companies can achieve individually, including accelerating the global growth of the iconic 7-Eleven brand and strengthening the Seven & i business in many parts of the world.”
As part of the NDA, there is a provision that ACT not conduct a hostile takeover while still exploring its growth plans.
