Why does Couche-Tard want to buy 7-Eleven? It’s a ‘cheap’ stock, says portfolio manager

On Jan. 23, 2024, participants at a product meeting for 7-Eleven Japan in Tokyo tasted onigiri and discussed flavors, textures, and fillings for the popular riceballs. Alimentation Couche-Tard proposed a buyout of 7-Eleven’s owner, Seven & i Holdings Co., which could be the largest foreign takeover of a Japanese company. Artisan Partners Asset Management urged Seven & i Holdings to consider the offer, while Comgest portfolio manager Richard Kaye believes there’s not much room for improvement in the core business. Regulatory hurdles are expected, with concerns over anti-trust scrutiny in both the U.S. and Japan. Despite potential challenges, Kaye sees Seven & i Holdings as a buying opportunity compared to other global companies in the market.

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