A letter Seven & i Holdings is sending to Canadian convenience-store operator Alimentation Couche-Tard says the offer to buy 7-Eleven’s parent company isn’t enough, according to a report first published by global news outlet Nikkei Asia. The letter also expresses concerns about competition laws.
Couche-Tard, which owns Circle K convenience stores, on Aug. 19 submitted a proposal to acquire Seven & i Holdings Co. Ltd. The Seven & i board of directors has formed a special committee, comprised solely of independent outside directors, led by Stephen Hayes Dacus as chairperson, to review the proposal, the company said at the time.
The takeover proposal by Couche-Tard includes acquiring all shares for a bit less than $15 per share in cash for a total proposed purchase price around $40 billion, a source close to the deal told Nikkei Asia.
After getting a report from a Seven & i committee that examined the takeover proposal, Seven & i’s board of directors on Thursday decided to send the letter to Couche-Tard, Nikkei Asia reported. The letter, which will request that Couche-Tard review its offer, might arrive as early as Friday.
CSP has reached out to Couche-Tard and Seven & i but has not yet heard back from either.
CSP reported Sept. 4 that Artisan Partners International Value Strategy, an investor of Seven & i Holdings, is pushing the company to promptly review Circle K-owner Alimentation Couche-Tard’s proposal to purchase the company. The investor, who owns more than 1% of the outstanding shares of 7-Eleven’s parent company, asked Seven & i Holdings for an update on negotiations by Sept. 19.
In Artisan Partners’ Aug. 30 letter, N. David Samra, portfolio manager, and Benjamin L. Herrick, associate portfolio manager, told members of Seven & i Holdings board that it was “imperative that the board of directors negotiate with ACT immediately to achieve the best possible outcome for shareholders.”
- 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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