Global retailer Seven & i Holdings Co. Ltd., the parent company of the 7-Eleven convenience-store chain, is denying reports that it plans to reject rival global convenience retailer Alimentation Couche-Tard Inc.’s $47 billion acquisition proposal.
Shares of Seven & i fell 12% on Tuesday following a report that it would reject the $47 billion takeover offer, according to Reuters, citing a report by The Japan News.
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, in a “notice regarding media reports,” said, “Some media reported today that the Seven & i Holdings Co. Ltd. is to reject the acquisition proposal by Alimentation Couche-Tard Inc. [ACT]; however, there is no such fact. The company remains committed to exploring all opportunities to unlock value for shareholders and continues to assess a full range of strategic alternatives, including the proposal from ACT. The Special Committee is engaging constructively with ACT to determine if an actionable proposal can be achieved that addresses the serious U.S. antitrust challenges that any such transaction would face.”
In August, Couche-Tard submitted a proposal, $14.86 per share or approximately $39 billion, to acquire Seven & i, which has rejected the proposal twice, saying it “undervalues” the company. Laval, Quebec-based Couche-Tard in October then raised its offer to $18.19 per share or approximately $47.2 billion.
The company was also considering a management buyout with funding from banks, trading company Itochu Corp. and the founding Ito family in a deal that could be worth more than $58 billion. In late February, Itochu withdrew from the buyout intended to block Alimentation Couche-Tard’s takeover attempt, essentially ending that effort.
Meanwhile, Seven & i also is moving ahead with a plan for its CEO, Ryuichi Isaka, to step down, to be replaced by independent director and Special Committee head Stephen Dacus.
Seven & i, Tokyo, operates convenience stores, superstores, supermarkets, specialty stores, foodservices, financial services and IT services. 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 and Canada.
Alimentation Couche-Tard, Laval, Quebec, operates in 31 countries and territories, with more than 16,700 stores. Its network includes more than 7,100 stores in the United States, primarily under the Circle K banner.
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