7-Eleven Shares Slump By Over 8% After Canadian Rival, Alimentation Couche-Tard's ₹3 Lakh Crore Takeover Bid

Over the years, the name 7-Eleven has flourished throughout the globe and has become one of the largest convenience store chains in the world. The American convenience store is owned by the Japanese company Seven & I Holdings.

ACT's Bid To Takeover 7-Eleven

7-Eleven has more stores in Japan than any other country in the world. To take on this dominance in a truly abstruse manner, 7-Eleven's Canadian rival, Alimentation Couche-Tard ACT, reportedly offered to buy shares in the company.

Alimentation Couche-Tard runs the convenience store chain Circle K.

This bid has resulted in the freefall of the company's shares. The company shares listed on the Tokyo Stock Exchange dropped to as low as 8 per cent.

The company, with thousands of stores around the globe, has become a familiar face. However, the Canadian convenience store's mammoth USD 38 billion or Rs 3.1 lakh crore, bid to take over the company has definitely raised some eyebrows.

As per reports, 7-Eleven has a staggering total of 84,500 convenience store outlets around the globe.

According to reports from the BBC, ACT claimed to have "submitted a friendly, non-binding proposal" to buy the retail chain. In addition, it also said, that there is no guarantee it will go ahead. But if the deal does indeed go ahead, the parent company of Circle K, ACT, will be able to expand its footprint in Asia.

The company has a major presence in America and Canada. A deal like this could dilute competition and make the convenience store market monopolistic in favour of ACT.

Companys Shares Slump

The Japanese convenience store giant's shares took a hit following the development, as the share price took a sharp dive after the beginning of the day's trade on Tuesday, August 20.

At 11:02 IST, the company shares dropped by a mammoth 9.05 per cent or JPY 196, taking the overall value of each individual share to JPY 1,966.