TOKYO (AP) - Canada’s Alimentation Couche-Tard has reiterated its commitment to pursuing the acquisition of Seven & i Holdings, despite the latter's rejection of its offer. Alain Bouchard, the chairman and founder of Alimentation Couche-Tard, expressed his determination to reporters in Tokyo, emphasizing a desire for a “friendly, mutually agreeable transaction.”
Bouchard clarified that the company is not seeking a hostile takeover, and he reassured stakeholders that local management will be retained post-merger, which he believes would be beneficial for 7-Eleven’s business operations. Known for its extensive network, Seven & i Holdings operates over 20,000 stores in Japan and more than 80,000 locations globally, serving approximately 63 million customers daily.
In its response to Couche-Tard, Seven & i Holdings stated that its focus is on enhancing its corporate value and has raised antitrust concerns regarding the potential acquisition in the U.S. In a strategic move to improve its business standing, Seven & i appointed a new chief executive this month and commenced a share buyback program. Additionally, it is selling its supermarket subsidiary to the U.S. private equity firm Bain Capital as a means to strengthen its market position and counter the takeover bid.
Last year, Couche-Tard, which operates Circle K stores, initially proposed acquiring all shares of Seven & i Holdings for $14.86 each in cash. Recent media reports indicate that Couche-Tard has increased its offer to approximately $18.19 per share, valuing the deal at around 7 trillion yen ($47 billion).
Stephen Dacus, the newly appointed CEO of Seven & i, publicly shared a letter addressed to Bouchard outlining the reasons for the rejection of the acquisition offer. He stated, “The proposal is not in the best interest of 7&i shareholders and other stakeholders. We are open to engaging in sincere discussions should you put forth a proposal that fully recognizes our standalone intrinsic value.”
In Japan, convenience stores, referred to as “conbini,” have become a central part of daily life, offering a range of services from paying utility bills to selling concert tickets, in addition to everyday consumer goods. Last year, in a bid to refine its operations and enhance profitability, Seven & i initiated a restructuring plan aimed at bolstering its U.S. business, including the closure of several Ito-Yokado supermarkets domestically. In 2023, the company also divested its Sogo & Seibu department stores in Japan to Fortress Investment Group, a U.S.-based fund, for $1.5 billion.
Founded in 1980 in Quebec, Couche-Tard has expanded its operations to include over 16,800 stores globally, with a footprint in the U.S., Europe, and Asia. The company is known for offering a variety of products and services, including coffee, beer, snacks, fuel, and lottery tickets.
