Couche-Tard Determined to Acquire Seven & i Holdings
Despite the rejection of its initial offer, Canadian company Alimentation Couche-Tard remains determined to acquire Seven & i Holdings, the operator of Japan's top convenience store chain.
Couche-Tard's chairman and founder, Alain Bouchard, emphasized his company's pursuit of a "friendly" transaction, not a hostile takeover. He reiterated his promise to retain local management and expressed his belief that the merger would benefit 7-Eleven's business.
Seven & i Holdings, however, has rejected the offer, stating its intention to boost its own corporate value and citing antitrust concerns in the U.S. The company has appointed a new CEO, announced a share buyback, and plans to sell its supermarket subsidiary to fend off the acquisition.
Couche-Tard, which operates Circle K stores, initially proposed acquiring all of Seven & i Holdings shares for $14.86 per share in cash. Media reports now suggest an offer of $18.19 per share, or about 7 trillion yen ($47 billion).
Seven & i's new CEO, Stephen Dacus, explained the company's rejection in a letter to Bouchard, stating that the proposal was not in the best interest of shareholders and other stakeholders. He expressed openness to further discussions if Couche-Tard presents an offer that fully recognizes Seven & i's standalone intrinsic value.
Convenience stores, known as "conbini" in Japan, are popular for their diverse offerings, including everyday goods, utility bill payments, and concert ticket sales.
Seven & i has implemented restructuring plans to strengthen its U.S. business and streamline operations, including the closure of some Ito-Yokado supermarkets in Japan. In 2023, the company sold its Sogo & Seibu department stores to a U.S. fund for $1.5 billion.
Couche-Tard, founded in 1980 in Quebec, operates over 16,800 stores worldwide, offering coffee, beer, snacks, fuel, and lottery tickets. The company has a presence in the U.S., Europe, and Asia.