7-Eleven could be bought by the Canadian company Alimentation Couche-Tard

A Canadian convenience store giant has its eye on 7-Eleven.

Alimentation Couche-Tard, which owns more than 16,000 Circle K and Couche-Tard stores worldwide, has made a takeover bid for Seven-Eleven’s Japanese operator, Seven & i Holdings. (SVNDY).

Seven & i Holdings said Monday received a “confidential, non-binding and preliminary proposal” from Alimentation Couche-Tard, which is based out of Montreal, to acquire “all of the outstanding shares” of the company.

The company formed a special committee to review the proposal led by Stephen Hayes Dacus, chairman of its board of directors.

“The special committee intends to conduct a prompt, careful and comprehensive review of the proposal, the Company’s stand-alone plans and other alternatives to increase corporate value,” Seven & i Holdings said in a statement.

The Japanese convenience store company did not provide details of the offer, including how much Alimentation Couche-Tard was offering for the takeover. The company has an estimated market value of $38 billion.

Japan has long opposed foreign takeovers, but just last year it changed its merger and acquisition policies and now advises companies to seriously consider foreign takeover offers that benefit shareholders, The New York Times reported.

Shares in Seven & i rose 23% on the Tokyo market on news of the takeover offer. The company was founded in 2005 after 7-Eleven became wholly owned by Japanese grocery chain Ito-Yokado, which acquired a 70% stake in the company in 1991.