Seven & I and Couche-Tard sign nondisclosure agreement
Seven & I Holdings and Canada's Alimentation Couche-Tard said Thursday they have signed a nondisclosure agreement, in a move that might signal discussion on the latter's takeover proposal is moving forward.
In a statement issued on Thursday, Seven & I said the agreement would facilitate information sharing between the two companies, in addition to the information already provided to potential divestiture package buyers.
Paul Yonamine, who chairs an independent special committee that is reviewing Couche-Tard's proposal, said Seven & I will work with the Canadian bidder to explore the possibility of a deal while simultaneously building on its standalone plan to achieve growth.
'We caution that it remains the case that it is critical for the (special committee) to assess if there is a path to a viable divestiture by identifying potential buyers and determining their ability to stand up a real, stand-alone business that will preserve competition and satisfy regulators. That work is ongoing,' Yonamine said in the statement.
Couche-Tard also noted in a Thursday release, 'There can be no assurance that these discussions will result in a transaction,' adding that the agreement will allow the two parties to 'progress transaction discussions, facilitate due diligence, and collaborate on plans to engage with regulators.'
Shares in Seven & I rebounded by 3.4% in Tokyo trading after the market opened on Thursday.
Seven & I had cited antitrust issues as a key hurdle to any talks with Couche-Tard and hadn't agreed to sign a nondisclosure agreement until now.
It has also actively attempted to avert the takeover since Couche-Tard announced its plan to purchase Japan's largest convenience store chain operator last August. Moves Seven & I has done so far include a massive management buyout proposal that later fell apart, as well as bringing a veteran American executive on as its new CEO .
After the company's founding family withdrew from the buyout proposal earlier this year, Seven & I unveiled in March one of the largest buyback plans ever in Japan that would see it purchase ¥2 trillion ($13.9 billion today) in shares through 2030, including a maximum of ¥600 billion in the fiscal year ending in March 2026.
To finance the buyback, the company said it would sell its noncore grocery retail businesses to Bain Capital while taking its North American subsidiary public by the second half of 2026.
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