Canadian convenience store giant Alimentation Couche-Tard has raised its offer to acquire 7-Eleven operator Seven & i Holdings, valuing the Japanese retailer at $47 billion. This new bid is a 20% increase over the previous $38.5 billion offer, signaling Couche-Tard’s strong interest in expanding its global footprint.

Seven & i, which owns the world’s largest convenience store chain with over 85,000 outlets globally, initially rejected the earlier bid, stating that it undervalued the company and could face significant regulatory challenges.

The latest bid has caused a surge in Seven & i’s stock, which jumped 4.7% at the close of trading in Tokyo, after a brief surge of nearly 9.5%. Despite the new offer being submitted on 19 September, no discussions between the two companies have taken place yet.

Seven & i confirmed receiving the revised offer but emphasized that it would act in the best interest of its shareholders. The firm was recently added to Japan’s list of businesses deemed critical to national security, a move that could require foreign investors like Couche-Tard to undergo government review.

If successful, this acquisition would mark the largest foreign buyout of a Japanese company. Couche-Tard, which operates Circle K stores, would more than double its presence in the U.S. and Canada, creating a combined global network of 100,000 convenience stores.

Experts, however, caution that the merger could raise antitrust concerns, as the combined company would have significant market power, potentially driving smaller operators out of business.

7-Eleven, a staple in Japan since its acquisition by Seven & i in 2005, offers a wide range of products from fresh food to concert tickets. The potential takeover comes as Seven & i focuses more on its core convenience business, with recent reports suggesting the company may even change its name to better reflect this shift.

The outcome of this proposed acquisition could reshape the global convenience store landscape, cementing Couche-Tard's position as a truly global player.