Alimentation Couche-Tard: To Bet Or Not To Bet After 7-Eleven Deal Fades?

Shortly after Canadian Alimentation-Couche Tard (aka Circle K) raised its bid to acquire 7&i (aka 7-Eleven), I reviewed the convenience store operator on Substack (ATD in Toronto, ANCTF in the US). Without this acquisition, ATD was positioned to deliver mid-to-high teens IRR over the next 5 years. And a special for dividend fans: ATD is the fastest consistent dividend grower I know - 26% CAGR or 10-fold over the last 10 years!

I will build on my prior publication skipping further explanations and background. The stock trades in CAD on TSX but reports in USD.

A consortium led by a descendant of 7&i’s founder, backed by three major Japanese banks and trading giant Itochu, countered with a higher bid of $58B vs $49B from ATD. The figures are leaked through the media without official disclosures.

The story has been widely covered by numerous news outlets. Here, I’ll focus solely on its impact on ATD’s stock and the related opportunities.