Artisan Partners opposes Stephen Dacus as the new CEO of Seven & i Holdings, the parent company of 7-Eleven. In a letter, they urged the board to reconsider a $47 billion takeover offer from Canada’s Alimentation Couche-Tard (ACT), believing it could maximize shareholder value. Artisan plans to vote against Dacus, other nomination committee members, and Vice President Junro Ito at the upcoming annual general meeting, advocating for a focus on the core convenience store business.
In light of the takeover bid, Seven & i has revealed a restructuring plan that involves offloading its superstore division to Bain Capital for $5.5 billion, lowering its ownership in Seven Bank to less than 40%, and targeting a share buyback of approximately 2 trillion yen by 2030. Additionally, the company intends to list its North American convenience store subsidiary by 2026. Stephen Dacus, previously an executive at Walmart and Fast Retailing, will take on the CEO role starting May 27, following Ryuichi Isaka.
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Even with Seven & i’s worries regarding regulatory challenges, Couche-Tard is optimistic about navigating U.S. antitrust obstacles related to its planned acquisition. To tackle these concerns, both firms are evaluating the possibility of selling off specific locations, with Couche-Tard actively pinpointing stores for sale and looking for potential buyers.
Moreover, Seven & i has begun talks with Couche-Tard about a potential store sale, aimed at supporting the takeover bid. This initiative is part of Seven & i’s strategy to tackle regulatory issues and consider possible partnerships.
