IRVING, Texas: The owner of the convenience store chain 7-Eleven, the Japanese Seven & i Holdings, has received a takeover offer from the Canadian group Alimentation Couche-Tard.

The company said it had formed a special committee of outside directors to review the offer, but did not provide further details.

Following the news, Seven & i Holdings shares jumped 23 percent in Tokyo, the biggest one-day gain in the company’s history.

“This potential takeover offer is significant,” said Neil Saunders, managing director of GlobalData. “7-Eleven is the largest operator in the U.S. convenience store market, holding a 14.5 percent share in 2023. By comparison, Couche-Tard’s banners had a 4.6 percent market share. Combining the two would create a company that controls almost a fifth of the market.”

Seven & i Holdings is working to streamline its business operations and last year sold, among other things, its department store chain Sogo & Seibu Co. to a US investment fund. Despite the takeover offer, the company said that neither the board of directors nor the special committee had yet made a decision on whether to accept the offer, enter into negotiations with Couche-Tard or explore other options.

Couche-Tard operates over 14,000 convenience stores in Canada, the United States, Ireland, Mexico and several European countries under various brand names, including Couche-Tard, Circle K and On the Run.

Saunders noted that any potential acquisition would likely attract the attention of U.S. regulators. “Although convenience stores are part of the broader grocery and grocery market, the level of market concentration created by this merger would almost certainly attract the attention of the Federal Trade Commission (FTC). Given the current negative sentiment regarding consolidation and competition in the grocery and essentials sector, this deal could pose significant regulatory challenges,” he said.

Seven & i Holdings has promised to make its decision public once it has reached a conclusion.