Canada’s Alimentation Couche-Tard reasserted its intention to acquire Seven & i Holdings, the operator of Japan’s leading convenience store chain, despite the rejection of its offer.
Bouchard, the chairman and founder of the company, emphasized in Tokyo this week that he is advocating for a “friendly” and consensual merger. He assured that the local management of 7-Eleven would remain intact and highlighted the potential benefits for the chain’s business.
With over 20,000 stores spread nationwide and close to 80,000 outlets globally, Seven & i Holdings caters to approximately 63 million customers daily. However, the Japanese company has dismissed the acquisition proposal, indicating that its current focus is on enhancing its corporate value. Concerns about potential antitrust issues in the U.S. also played a role in the rejection.
Seven & i recently appointed a new CEO and plans to buy back shares and divest its supermarket arm to Bain Capital, a U.S. private equity firm, as part of its strategy to enhance its value and resist acquisition attempts.
Previously, Alimentation Couche-Tard, which operates Circle K stores, proposed buying all of Seven & i’s shares at a rate of $14.86 per share in cash. However, recent reports suggest the offer value has increased to $18.19 per share, an equivalent of roughly 7 trillion yen or $47 billion.
The new CEO of Seven & i, Stephen Dacus, explained in a letter sent to Bouchard why the offer was turned down. He asserted that the proposal was not beneficial to the shareholders and stakeholders of 7&i, but mentioned a willingness to engage in discussions if a proposal matching their intrinsic value was presented.
In Japan, convenience stores, commonly known as “conbini,” are a staple and provide a wide range of services, including utility bill payments and selling concert tickets. To align with its business strengthening plans in the U.S., Seven & i initiated a restructuring strategy last year, which included closing some Ito-Yokado supermarkets. Earlier this year, the company sold its Sogo & Seibu department stores to Fortress Investment Group for $1.5 billion.
Founded in 1980 in Quebec, Couche-Tard specializes in offering a variety of products, such as coffee, beer, snacks, fuel, and lottery tickets. It currently operates over 16,800 stores worldwide, extending its reach across the U.S., Europe, and Asia.
