The Japanese parent company of 7-Eleven, Seven & i Holdings, has turned down a $38 billion (£29.2 billion) acquisition offer from Canadian rival Alimentation Couche-Tard (ACT). In a response to ACT’s proposal, Seven & i Holdings criticized the bid for significantly undervaluing the company and raising substantial regulatory concerns.
In a letter to ACT, Stephen Dacus, chair of Seven & i’s special committee of independent directors, described the offer as “opportunistically timed” and insufficiently recognizing the company’s potential. The letter revealed that ACT’s initial bid valued Seven & i at $14.86 per share, which is more than 20% above its pre-offer share price.
Seven & i Holdings also noted the proposal’s timing coincides with a period of significant weakness in the Japanese yen against the US dollar, making Seven & i more accessible to international buyers. The letter pointed out potential hurdles from US competition law that could complicate the transaction.
ACT’s offer, if successful, would have marked the largest foreign takeover of a Japanese company and significantly expanded its presence. ACT, based in Quebec and listed on the Toronto Stock Exchange, operates around 17,000 stores under the Circle K and Couche-Tard brands across North America, Europe, and Asia. The acquisition would have increased its footprint to approximately 20,000 locations.
Despite the rejection, Seven & i Holdings expressed willingness to explore improved proposals, signaling openness to further negotiations.
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