What is the reason behind Couche-Tard's interest in purchasing 7-Eleven, according to a portfolio manager? The stock is considered inexpensive.

• Last month, K's operator proposed acquiring its Japanese competitor. Although the amount has not been disclosed, a successful deal would make it the largest foreign takeover of a Japanese company.
• Richard Kaye, portfolio manager at independent asset management group Comgest, stated that "probably sees a cheap stock" if he is to be very frank.

The affordability of Alimentation Couche-Tard's proposal to buyout 7-Eleven's owner was likely a driving factor, as it was more cost-effective compared to global counterparts. Richard Kaye, portfolio manager at independent asset management group Comgest, stated this on Monday.

Last month, the Circle K operator proposed acquiring its Japanese competitor. Although the purchase price has not been revealed, if the deal is finalized, it will be the largest foreign takeover of a Japanese corporation.

On Friday, Artisan Partners Asset Management urged the U.S. to "seriously consider" the buyout offer and to "quickly solicit offers" for the company's Japanese subsidiaries.

The restructuring within the company led to the offer to expand 7-Eleven's global presence while also selling off its underperforming supermarket business.

""Preserving positive stakeholder outcomes in Japan is best achieved through negotiating with ACT," wrote N. David Samra and Benjamin L. Herrick, Artisan portfolio managers, in a letter according to Reuters."

In an interview on CNBC's "Squawk Box Asia," Kaye expressed her disagreement on Monday, stating that she believes there is no need for a radical reform to be carried out by a foreign acquirer.

The company is excelling in logistics and product innovation, and it is challenging to believe that it could be improved significantly, according to him.

Kaye acknowledged that the company could move faster to reform its other segments, such as its general merchandise stores.

What he probably sees is a cheap stock, if I can be very frank.

According to LSEG data, Seven & i is currently trading at a 27.96 price-to-earnings ratio and has a price-to-book ratio of 1.47.

While Seven & i Holdings has more stores globally with approximately 85,800, ACT has a higher valuation of $54 billion as of Monday's market close compared to the Tokyo-listed company's 5.26 trillion yen, or $38.3 billion.

Regulatory hurdles

The proposed deal may face anti-trust scrutiny in both countries, particularly in the U.S, according to a retail analyst who spoke to CNBC.

According to Bryan Gildenberg, managing director at Retail Cities, there will likely be regulatory concerns and necessary divestments for the deal to succeed, as he stated on CNBC's "Street Signs Asia" last month.

According to Bloomberg's report on August 27, sources close to the matter revealed that Seven & i is seeking classification as a "core" company under Japan's Foreign Exchange and Foreign Trade Act. This designation would necessitate the finance ministry's review of the entity's attempt to acquire more than a 10% stake in a "core" company.

The report mentioned that such companies operate in the aerospace, nuclear energy, and rare earths sectors.

Kaye stated that the move of Seven & i being concerned about an ACT buyout potentially harming its "meticulously crafted, time-tested, distinctive konbini business model, which 7-Eleven has cultivated in Japan and is now introducing to the U.S" is a cause for concern.

Japan's convenience stores are commonly referred to as konbini.

Kaye views the stock as a "buying opportunity" among a pool of stocks in the Japan-listed universe, which includes global companies such as and , which operates the Don Quijote chain.

He highlighted that there are companies that perform well on a global scale, but they are less expensive than their global counterparts.