Alimentation Couche-Tard would have revised upwards its offer to purchase the 7-Eleven chain, according to the Bloomberg agency

There are rice balls as well as concert tickets: 7-Eleven, omnipresent and adored store emblems in Japan, are coveted by Alimentation Couche-Tard, a battle whose stakes are not only financial.

Seven & i Holdings, the Japanese group that owns 7-Eleven, rejected a takeover offer from the Canadian distribution giant in early September. But the latter has not given up and has, according to the Bloomberg agency, revised upwards its proposal, which is now approaching $50 billion.

At the risk, if he succeeds in his goals, of opening the door to other significant acquisitions of Japanese firms by foreign players – a political issue less than three weeks before legislative elections in the archipelago, but also very symbolic.

Like its competitors FamilyMart or Lawson, the 7-Eleven on the corner embodies in the eyes of the Japanese a very popular resort for an aging population and a sort of one-stop shop for everyday needs.

In addition to fresh produce, prepared meals, sandwiches and toiletries, Japanese people go there to pay their bills, print photos, use the ATM, and even send suitcases to the other side of the country.

There are around 21,000 scattered across the archipelago. “They are part of the fabric [social et économique] Japanese, infrastructure,” tells AFP Gavin Whitelaw, an anthropologist from Harvard University who has worked in three Japanese stores.

To operate efficiently, Japanese stores compile a lot of data on their users, and “have become a global model for local commerce,” observes Mr. Whitelaw.

“National pride”

“It is a source of national pride. These stores, nicknamed “konbini”, often act as pillars of the local community, contributing to festive events and providing assistance in times of disaster,” he adds.

7-Eleven stores appeared as early as 1927 in the United States, later adopting the name because they opened from 7 a.m. to 11 p.m. But Japanese billionaire Masatoshi Ito, by buying them, made them an empire, with around 85,000 stores in 19 countries, a quarter of which are in Japan.

If the takeover by Alimentation Couche-Tard materializes, it would be the largest foreign acquisition ever made by a Japanese company, with an amount initially estimated at around 40 million dollars (36 billion euros).

The Canadian group itself manages around 16,700 points of sale in 31 countries, and the merger would create a global distribution juggernaut.

“The timing is perfect” because Japanese companies appear “relatively cheap” to acquire due to the sharp weakening of the yen, underlines Kai Li, professor of corporate governance at the UBC Sauder School of Business in Canada.

And Tokyo relaxed its rules on mergers and acquisitions last year to discourage Japanese companies from systematically rejecting foreign takeover offers, with a view to making the country more attractive.

“Very foreign concept”

Japanese companies, long renowned for their resounding acquisitions around the world, are hardly used to being the objects of foreign appetites themselves.

“Traditionally, companies are very stable in Japan and view mergers as a very, very foreign concept: if you sell, that’s the end of your company’s story,” says Nobuko Kobayashi of consultancy EY.

A situation that the authorities want to change, at a time when the fourth largest economy in the world is trying to escape economic stagnation – a priority of the new government.

The weakened yen, the stock market undervaluation of Japanese firms and the declining attractiveness of China are “all reasons to turn our eyes to Japan”, believes Ms.me Kobayashi.

But at the cost of a formidable challenge for these potential buyers: faced with rigid Japanese management frameworks, “it may take a structural change in mentality to unlock the value” of a Japanese firm, she judges.

Nothing is yet decided for Seven & i, which the Japanese Ministry of Finance classified in mid-September as an “essential” company – giving the authorities the possibility, under conditions, of suspending or blocking a takeover. The group’s boss, Ryuichi Isaka, is due to speak on Thursday after publication of quarterly results.

Alimentation Couche-Tard had already attempted a merger with the French Carrefour in 2021, but failed, victim of the categorical refusal of the French government during the pre-election campaign.

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