Alimentation Couche-Tard Inc. is not considering a hostile takeover bid for Seven & i Holdings Co. Ltd., according to a report by Nikkei Asia citing the Canadian company’s co-founder and executive chairman, Alain Bouchard.
Such a move is “not in the plan” to acquire the Tokyo-based parent of 7-Eleven Inc., Bouchard told the media outlet. A hostile bid “was not among factors being considered,” and that the company intends to secure a friendly acquisition deal, the report said.
Couche-Tard in August submitted an acquisition proposal to Seven & i. The board of Seven & i formed a special committee of independent outside directors to review the offer. It has rejected the initial proposal twice, saying the bid “undervalues” the company. Couche-Tard has since raised its offer, from $14.86 per share or approximately $39 billion, to $18.19 per share or approximately $47.2 billion.
Asked whether Couche-Tard could raise its bidding price further, CEO Alex Miller told Nikkei that “the current proposed price is attractive for all stakeholders,” a statement that suggests a higher bid will not be forthcoming.
Meanwhile, Seven & i also is considering a management buyout with funding from banks, Itochu Corp. and the founding Ito family in a transaction that could be worth up to $58 billion, according to some estimates.
Seven & i has confirmed that it has received a nonbinding and confidential proposal to acquire the company from Junro Ito, vice president and a representative director of the company and Ito-Kogyo Co. Ltd., a private company affiliated with Ito.
Ito-Kogyo wants to raise more than $52 billion dollars from parties including three megabanks and leading U.S. financial institutions, according to a report by NHK World Japan. This would be done through a "specific purpose company," mainly consisting of the founders. The goal is to launch a takeover bid of Seven & i shares. If the Seven & i special committee approves, the procedures could be completed by the end of March, the report said.
Artisan Partners International, a U.S.-based investor in Seven & i, has called on the company’s special committee to consider a bidding process that includes all competing acquisition proposals to secure the best offer.
In a “notice regarding media reports,” Seven & i said, “Some media reported that the founding family of Seven & i Holdings Co. Ltd. aims to raise funds for buyout by the end of fiscal year, but no decision has been made by the company at this time.”
7-Eleven is No. 1 on CSP’s 2024 Top 202 ranking of U.S. c-store chains by store count. Alimentation Couche-Tard is No. 2.
Seven & i is a global operator of convenience stores, superstores, supermarkets, specialty stores, foodservices, financial services and IT services. 7–Eleven International LLC franchises or licenses more than 44,000 stores in 19 countries and regions, The brand also operates corporate or franchise stores in the United States, Canada, Mexico and Japan. Globally, the 7-Eleven trademark is represented in approximately 83,000 stores.
Irving, Texas-based 7-Eleven Inc. operates, franchises or licenses more than 83,000 convenience stores in 19 countries and regions, including more than 13,000 7-Eleven convenience stores in the United States.
Laval, Quebec-based Couche-Tard operates in 31 countries and territories, with more than 16,700 stores. Its network includes more than 7,100 stores in the United States under the Circle K and Holiday Stationstores banners, and approximately 2,100 in Canada under the Circle K and Couche-Tard banners.
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