Couche-Tard's Friendly Pursuit of Seven & i
Alimentation Couche-Tard Inc., the Canadian convenience store giant, has made it clear that they intend to pursue their acquisition of Seven & i Holdings Co., the parent company of Seven-Eleven Japan, in a friendly manner.
"We don't want to be hostile. That's not our plan," stated Alain Bouchard, founder and executive chairman of Couche-Tard, during an interview. "We want to be friendly."
Couche-Tard, known for its Couche-Tard and Circle K brands in North America, believes that the industry needs a strong leader and sees Seven-Eleven as the ideal partner. Their initial offer of approximately 6 trillion yen ($39 billion) in August was rejected by Seven & i, who deemed it an undervaluation. Couche-Tard responded by increasing their offer by 1 trillion yen in September.
In a countermove, Seven & i is exploring the possibility of going private through a management buyout. This has raised questions about whether Couche-Tard will further increase their offer. However, company president and CEO Alex Miller emphasized that their current offer remains the most compelling.
The outcome of this pursuit remains uncertain. Couche-Tard's commitment to a friendly approach and their belief in the strategic value of Seven-Eleven suggest they may be willing to negotiate further. However, Seven & i's management buyout option adds another layer of complexity to the situation.