TOKYO, May 1, 2025 (BSS/AFP) - The Japanese owner of 7-Eleven has signed a non-disclosure agreement to advance talks with Canada's Alimentation Couche-Tard -- which wants to buy its convenience store rival -- the companies said Thursday.

Seven & i, the parent company of 7-Eleven, last year rebuffed a takeover offer worth nearly $40 billion, but ACT has since vowed to pursue a mutually agreed transaction.

It would be the biggest foreign takeover of a Japanese firm, merging 7-Eleven, Circle K and other franchises to create what ACT's CEO has described as a "global champion of convenience stores".

ACT said in a statement Thursday it had signed the non-disclosure agreement with Seven & i "to progress transaction discussions, facilitate due diligence, and collaborate on plans to engage with regulators".

"There can be no assurance that these discussions will result in a transaction," it cautioned.

Seven & i called the agreement "a positive step in the constructive engagement process with ACT" and said it would "facilitate the sharing of information" between the pair.

"Unlocking significant value for shareholders and other stakeholders remains Seven & i's top priority," it said.

"A standalone plan" of "well-defined management initiatives" led by incoming CEO Stephen Hayes Dacus is another option it will pursue, the Japanese company said.

Seven & i has for two decades wholly owned 7-Eleven, the world's biggest convenience store brand which operates around 85,000 outlets worldwide.

Around a quarter of 7-Eleven outlets are in Japan where they sell everything from concert tickets to pet food and fresh rice balls, although sales have been flagging.

ACT, which began with one store in Quebec in 1980, runs nearly 17,000 convenience store outlets worldwide, including Circle K.

To fend off the ACT buyout, Seven & i has taken measures including a huge share buyback, an IPO of its US unit and appointing its first foreign CEO.