Alimentation Couche-Tard, the Canadian convenience store giant, has dropped its $US45.8 billion ($70.6 billion) takeover offer for Seven & i Holdings Co, the Japanese operator of 7-Eleven. Couche-Tard stated that Seven & i refused meaningful engagement throughout the nearly year-long pursuit, prompting the withdrawal of the bid. Alimentation Couche-Tard is a Canadian multinational convenience store company that operates a large network of stores across North America, Europe, Asia, and Latin America. Seven & i Holdings is a Japanese retail group primarily known for operating 7-Eleven convenience stores, Ito-Yokado supermarkets, and Sogo and Seibu department stores.
Couche-Tard expressed its frustration in a letter to Seven & i’s board, stating, “There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal.” The Canadian company accused Seven & i of engaging in “a calculated campaign of obfuscation and delay,” which they claimed was detrimental to the Japanese company and its shareholders. This breakdown in communication led Couche-Tard to abandon the acquisition attempt.
Following the announcement, Seven & i’s stock experienced a sharp decline, plummeting as much as 9.6 per cent in early trading in Tokyo. In response to the takeover interest, Seven & i had been working to solidify its position as an independent entity, including appointing Stephen Dacus as chief executive officer, selling its superstore business for $US5.4 billion, proposing a ¥2 trillion share buyback, and planning a listing of its US business.
Seven & i released a statement expressing its disappointment with Couche-Tard’s decision. The Japanese company refuted what it described as “numerous mischaracterizations” in Couche-Tard’s letter. Seven & i reaffirmed its commitment to its standalone value creation plan and stated its intention to swiftly improve key operational areas.
