Alimentation Couche-Tard Inc. executives say the recent process they've adopted to try to buy the owner of 7-Eleven has helped negotiations and perhaps even sped things up.
The Laval, Que.-based convenience store operator, which owns Circle K, signed a non-disclosure agreement with Seven & i Holdings Co. Ltd. in May. It also put together a portfolio of U.S. stores it would consider selling in hopes of appeasing regulators and advancing its goal of acquiring 7-Eleven's Japanese parent company.
"I think the benefit of that is it's setting a timeline to bring clarity to both us ... and their special committee, if a transaction is going to be reached," said CEO Alex Miller.
"I believe that timeline will be shorter rather than longer."
The comments offer a window into the talks between the two convenience store giants, whose relations have swung from acrimonious to more tempered since Couche-Tard made a bid for Seven & i last August.
Seven & i's board initially rebuffed Couche-Tard's offer, causing it to sweeten its bid by 22 per cent to a reported US$47 billion. Still, Seven & i fought the attempt and eventually garnered a buyout proposal from the family that helped found the Japanese firm.
When that fell through, Couche-Tard and Seven & i started mapping out potential buyers for convenience stores that could be sold to satisfy U.S. antitrust regulators.
They've said little about how things have progressed since, but Miller mentioned Thursday that only a small group at Couche-Tard is involved with the potential acquisition and engaged with management discussions and due diligence.
"Our focus on mergers and acquisitions, it hasn't changed," he said.
"I would say activity has not been as pronounced in the recent weeks as it had been over the previous months, but we remain active on some things and we will continue to look at those things as we have always done."
His comments came a day after Couche-Tard revealed it earned US$442.3 million during the fourth quarter, down from US$454.5 million during the same quarter last year.
The company, which keeps its books in U.S. dollars, reported net earnings attributable to shareholders came in at US$439.4 million during the quarter, compared to US$453 million during the same period last year.
Earnings per diluted share for the period ended April 27 reached 46 cents US during the fourth quarter, compared with 47 cents US during the same period last year.
Revenue came in at US$16.3 billion during the fourth quarter, down 7.5 per cent on an annual basis.
The quarter encompassed a period of time that was "not overly rosy" but "fairly stable."
"This year has been among the more challenging in retail as our consumers are hurting and carefully watching their spending," Miller said, in what was likely a reference to the tariff dispute and high cost of living.
Yet Canada saw strong demand for fuel and Couche-Tard feels there are more opportunities to expand its market share.
Plus, it has also seen "significant tailwinds" from legislation that allows it to sell alcohol at its Ontario convenience stores.
Miller has seen the addition of booze at locations in the province prove popular and offset losses from nicotine-based products.
Moving forward, it will continue its emphasis on expanding food sales. The number of food products the company has sold in the U.S. alone has risen for 14 weeks straight, Miller said, adding that part of the business is in its "early innings."
It will also focus on personalizing its customer experience. Efforts in that area so far have boosted the number of trips people make to Couche-Tard's stores and how much they spend.
This report by The Canadian Press was first published June 25, 2025.
Companies in this story: (TSX:ATD)
Tara Deschamps, The Canadian Press
