Alimentation Couche-Tard Inc., a leading Canadian convenience store and gas station operator, has declared its commitment to maintaining a cooperative approach in its multi-billion dollar acquisition attempt of Seven & i Holdings Co.
The message is clear: Couche-Tard has no interest in pursuing a hostile takeover. On a newly launched website, the company emphasized its belief in the attractiveness of their proposal for all parties involved, including Seven & i stakeholders, customers, and franchisees. This diplomatic stance aligns with their efforts to deepen cooperation with the Japanese firm.
In a bid to reinforce their intentions, Couche-Tard confirmed earlier this week that they have secured necessary financing and anticipate smooth sailing through U.S. antitrust regulatory procedures. The company submitted a fresh non-binding proposal, priced in yen, on January 24. This revised offer amounts to approximately ¥7.39 trillion, or $49.9 billion, aligning with their previous per-share estimate of $18.19 at the existing exchange rate.
Since the acquisition plans came to light in August, Seven & i has been steadfast in its efforts to remain autonomous. From introducing a new CEO, Stephen Dacus, to divesting its superstore operations for $5.4 billion and rolling out a significant ¥2 trillion share buyback initiative, the company is striving to bolster its independence. Nevertheless, the market seems unconvinced, as Seven & i’s stock continues to trade over 20% below Couche-Tard’s offer.
It has been reported earlier this year that instead of selling Seven & i to the Canadian giant, the founder family of the Japanese convenience stores chose to seek alternative buyers. This includes Japan’s Itochu and Thailand’s CP Group. After several weeks of speculation, both companies came out and shut down the talks, saying that there will be no deal to acquire Seven & i.
