The Japanese 7-Eleven convenience store chain’s parent company has declined an acquisition offer from Alimentation Couche-Tard Inc. of Canada. The proposal to acquire all outstanding shares of Seven & i Holdings Co. for $14.86 per share in cash, totaling about $38.6 billion, was carefully reviewed by a special committee that deemed the offer not in the best interest of shareholders and stakeholders. The stock price of Seven & i surged following news of the takeover offer, standing at 2,133.5 yen ($14.92) on the Tokyo Stock Exchange Friday, a 1.4% decrease.
Couche-Tard confirmed making a friendly proposal and aims for a mutually beneficial agreement that benefits both companies and their stakeholders. The offer was criticized for undervaluing the potential of the convenience store business and not fully addressing U.S. regulatory concerns.
The future remains uncertain, as Couche-Tard may consider making another offer in the future. Some analysts believe that Seven & i has not maximized the business’s global potential or provided sufficient value to shareholders. The 7-Eleven franchise encompasses 86,000 stores across multiple countries, while Couche-Tard operates about 17,000 stores globally.
A potential acquisition of this magnitude could face challenges obtaining U.S. regulatory approval. Seven & i recently announced a restructuring plan to enhance its U.S. operations and efficiency, including the closure of some Ito-Yokado supermarkets in Japan. The ubiquitous 7-Eleven stores in Japan continue to be popular among consumers for their diverse offerings.
In a separate business move, Seven & i sold Sogo & Seibu department stores in Japan to Fortress Investment Group last year for $1.5 billion. Despite reporting a 20% decrease in annual profit and nearly a 3% drop in annual sales earlier this year, Seven & i remains a prominent player in the retail industry.
