Canada’s Alimentation Couche-Tard reiterated on Thursday that it remains committed to acquiring Seven & i Holdings, despite the Japanese company, which operates the country’s leading convenience store chain, rejecting the offer.
Alain Bouchard, the chairman and founder of Alimentation Couche-Tard, told reporters in Tokyo that the company is still seeking a “friendly, mutually agreeable transaction.” He emphasized that they were not pursuing a hostile takeover and reaffirmed that local management would be retained, with the merger benefiting 7-Eleven’s business.
Seven & i Holdings, which operates over 20,000 stores in Japan and more than 80,000 globally, serves an estimated 63 million customers daily, according to the Tokyo-based company.
In rejecting the Canadian offer, Seven & i Holdings expressed its intention to enhance its own corporate value. The company also raised antitrust concerns, particularly regarding potential issues that could arise in the United States.
This month, Seven & i appointed a new CEO and unveiled plans for a share buyback. The company also announced it would sell its supermarket division to U.S. private equity firm Bain Capital as part of its strategy to increase its value and counter the acquisition attempt by Alimentation Couche-Tard.
Last year, Alimentation Couche-Tard, the operator of Circle K stores, made an offer to acquire all shares of Seven & i Holdings at $14.86 per share in cash. Recent reports now indicate that the offer has increased to $18.19 per share, totaling approximately 7 trillion yen ($47 billion).
Seven & i has made public a letter from its new CEO, Stephen Dacus, which was sent to Alain Bouchard in September, outlining the reasons for rejecting the Canadian company’s proposal.
“The proposal is not in the best interest of 7&i shareholders and other stakeholders. We are open to sincere discussions if you present an offer that fully recognizes our standalone intrinsic value,” Dacus wrote.
In Japan, convenience stores, or “conbini,” are highly popular, offering various services such as utility bill payments and concert ticket sales, in addition to a wide range of everyday products.
Last year, Seven & i unveiled a restructuring plan aimed at strengthening its U.S. operations and streamlining its overall business. As part of this effort, the company closed several Ito-Yokado supermarkets in Japan. In 2023, Seven & i sold its Sogo & Seibu department stores in Japan to U.S. investment firm Fortress Investment Group for $1.5 billion.
Founded in 1980 in Quebec, Couche-Tard operates over 16,800 stores globally, offering products like coffee, beer, snacks, fuel, and lottery tickets. Its stores are spread across the U.S., Europe, and Asia.