Unlikely completion of 7-Eleven merger

Fri 11/01/2024

by Ellie LeTu

Source: WSJ

• Circle K failed attempt to acquire 7-Eleven

  • Circle K's proposal to acquire 7-Eleven was rejected due to a low offer.

  • The Department of Justice (DoJ) is concerned about potential antitrust issues related to this merger.

• Lack of increased competitiveness

  • The convenient stores market is extremely fragmented.

  • Independent stores hold approximately 60% of the market share.

  • The 10 largest chains combined account for less than 20% of the market.

• The trend ahead

  • There will be more M&A within this space.

  • Both Couche-Tard (Circle K) and Seven & I (7-Eleven) aim to expand earnings by over 70% by 2028.