The Wall Street Journalreports that 7-Eleven has offered $40 a share to acquire Casey's General Stores Inc. 7-Eleven outbid an offer from Alimentation Couche-Tard Inc., a Canada-based convenience store company.
The Wall Street Journal says Casey's and 7-Eleven have entered talks even though Casey's thinks 7-Eleven's offer is too low.
Iowa-based Casey's said on Tuesday it had received an unsolicited, nonbinding offer on Sept. 2 from an unnamed party and it was entering into talks-even though Casey's deemed the $40-per-share bid too low to complete a deal. Those discussions are in the early stages, people familiar with the matter said, despite the price being too low to complete a transaction. Casey's and 7-Eleven declined to comment.
The WSJ says there are roughly 6,000 7-Eleven stores and 1,500 Casey's stores in the U.S. There is a major difference in where the stores are located. Most Casey's stores are rural and most 7-Eleven stores are in urban areas. This could help make the two convience store companies a good match. The could merge without having to worry much about overlapping locations.
The Wall Street Journal 
