Alimentation Couche-Tard remains committed to acquiring Japan’s Seven & i Holdings, despite the company rejecting its $47bn offer.  

Chairman Alain Bouchard reaffirmed in Tokyo that the bid is “friendly” and not a hostile takeover. He pledged to retain local management and support 7-Eleven’s business growth.

Seven & i, which operates over 20,000 stores in Japan and more than 80,000 globally, dismissed the offer, citing plans to enhance its corporate value. The company also flagged potential U.S. antitrust concerns. To strengthen its position, Seven & i appointed a new CEO, launched a share buyback, and agreed to sell its supermarket subsidiary to Bain Capital.

Couche-Tard initially proposed a $14.86 per share cash offer but raised it to $18.19 per share, valuing the deal at 7 trillion yen ($47bn). Despite the increase, CEO Stephen Dacus stated that the bid does not fully reflect Seven & i’s intrinsic value. However, he signalled a willingness to engage in discussions if a revised proposal aligns with shareholder interests.

Seven & i continues restructuring to optimise its U.S. operations, having sold its Japanese department stores to Fortress Investment Group for $1.5bn last year. Meanwhile, Couche-Tard, which operates 16,800 stores under the Circle K brand, is expanding globally, offering fuel, snacks, and essential goods.

As the deal unfolds, Couche-Tard faces the challenge of securing shareholder support while navigating regulatory hurdles in the U.S. and Japan.

Source: Fortune