One of the major Japanese retailers, Seven & I Holdings Co., plans to turn down the takeover bid that the giant store in Canada proposes, Alimentation Couche-Tard Inc., as the offer price is not high enough for acceptance. The company’s board concluded that the deal didn’t benefit the shareholders, so a notification letter is expected to be sent to the Canadian firm soon.
In August 2024, Seven & I mentioned that they had received a non-binding buyout proposal from the Canadian retailer without revealing any offer price. The Japanese firm has set up a special committee of independent directors to review the proposal. This planned buyout could be one of the biggest acquisitions by a Japanese company, given the retailer’s market capitalisation of over 5 trillion yen or $35 billion.
Seven & I state that the Canadian firm misjudged its business strategy and the proposal from the Canadian retailer. Alimentation Couche Tard runs brands, including Couche Tard and Circle K, with around 17,000 stores in over 30 countries and regions, along with Canada and the United States.
Also Read: US to Expand Military Capabilities Base With New Repair Hubs
However, the official statement has not yet been published by Seven & I as a general policy, while they will publish a final announcement once the matter is disclosed; meanwhile, Couche Tard declined to comment on these matters. Its incoming CEO Alex Miller has mentioned that Couche Tard was confident in its ability to finance and finish the offer.
