Couche-Tard pulls US$47 billion takeover bid for Seven & i
CANADIAN retailer Alimentation Couche-Tard said on Wednesday it was withdrawing its $47 billion takeover bid for Seven & i Holdings, citing a lack of constructive engagement by the Japanese retailer.
The surprise move marks the end of a year-long attempt by Circle K operator Couche-Tard to create a global convenience store giant by acquiring the company behind 7-Eleven.
"There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives," Couche-Tard said in a letter to its board of directors.
"Rather, you have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7&i and its shareholders," the letter said.
Seven & i has been seen as a test case for corporate Japan's willingness to entertain foreign takeover bids, with the withdrawal coming after Nippon Steel was able to acquire U.S. Steel in a $14.9 billion transaction.
Seven & i said it was not immediately able to comment.
Couche-Tard raised its offer to $47 billion from $38.5 billion in October last year and in March offered to increase it further if the Japanese firm cooperated and revealed more financial information.
It was also working with Seven & i on a store sale plan, in a bid to ease some regulatory hurdles.
Couche-Tard's attempts at cementing the acquisition had gathered steam after a rival $58 billion white-knight bid from Seven & i Holdings' founding family ended after failing to get financing.
The companies had inked a non-disclosure agreement (NDA) earlier this year, but "the quantity and substance of the permitted due diligence, including at two tightly constrained management meetings, have been negligible," Couche-Tard said in the letter.
"At this point, we had no visibility into whether or when we might receive any further information," Couche-Tard's letter said.
Couche-Tard said it had offered to acquire all of 7&i's business outside of Japan and just 40% of the business in Japan, where convenience stores are seen as key infrastructure due to their support role during natural disasters.
"We are not able to effectively pursue this combination without deeper and genuine further engagement from 7&i leadership and the special committee," the letter said.
Seven & i proposed selling its international business to Couche-Tard in return for a stake in the Canadian retailer, the letter said.
Such a deal "would not deliver the significant premium that was offered to your shareholders in our transaction proposals," the letter said.
Seven & i has been under intense pressure to improve its lacklustre earnings and demonstrate it can grow independently.
The company has announced a share buyback, is selling off non-core assets and plans to list its North American convenience store business. - Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Borneo Post
13 hours ago
- Borneo Post
Chitose plans to operate 10 mln hectares of microalgae production facilities
Chitose Group, with its operations in Japan, Singapore, Brunei, Thailand and Vietnam, planned to produce a wide range of products for commercial use, such as chemicals, cosmetics, fuels, feeds and foods using microalgal biomass. KUALA LUMPUR (July 27): Chitose Group which operates the world's largest microalgae production facility using flat-panel type photobioreactors in Kuching, Sarawak, is aiming to develop 10 million hectares of large-scale microalgae cultivation farms in Malaysia, Indonesia, India, Middle East and other potential areas, by 2050 covering a market size of US$4.2 trillion (US$1=RM4.22). Chitose Group's holding company, Chitose Bio Evolution Pte Ltd executive officer Ryosuke Koike said Chitose Group, with its operations in Japan, Singapore, Brunei, Thailand and Vietnam, planned to produce a wide range of products for commercial use, such as chemicals, cosmetics, fuels, feeds and foods using microalgal biomass. 'The microalgal biomass will be processed and sold through a supply chain in collaboration with partners through the Matsuri initiative to build a new algae-based industry to replace the petroleum-based industry,' he told Bernama recently. Matsuri, a collaborative initiative led by Chitose Group, comprised over a hundred partners – global companies as well as universities, public and research institutions. 'Each microalgae production facility in various locations in the world will pursue a self-funded business model whereby each site will raise funds via its own cash flows,' he said. Chitose Group also aims to become the manager of assets and manage the whole supply chain rather than becoming the owner of assets. The group collaborated with two Japanese research organisations, namely the Institute of Microalgal Technology, Japan (IMAT) and New Energy and Industrial Technology Development Organisation (NEDO), as well as Sarawak Biodiversity Centre, for the existing five hectares of microalgae production facility in Sarawak, which was set up in 2023.. By 2030, microalgae production will be expanded and new products will be developed and marketed from microalgal biomass produced in the microalgae production facility in Kuching, based on the US$400 million research funding granted by the Japanese government. He emphasised that Malaysia is an ideal location for Chitose Group's photosynthesis business due to its abundant solar radiation and equatorial climate. By cultivating microalgae, he said the group is contributing towards decarbonisation, a global agenda in moving away from fossil resource dependence and reducing carbon emissions. This is possible as microalgae can absorb carbon dioxide and can be used to develop fuels, plastics, fibres, paint, food and many things in daily lives. Commenting on the changing landscape in international trade regulations, he said: 'We are aiming to build a society where humanity can thrive for the next thousand years. Given the long-term nature of our plans, we are not affected by policy shifts even in major countries, and we remain committed to creating a sustainable future.' Among the bio-economy businesses led by Chitose Group in Malaysia is its sustainable agriculture and resource circulation initiative, within which it collaborated with over 20 local farmers in Cameron Highlands, and grows produce using sustainable methods of soil cultivation rooted in Japanese tradition and scientific knowledge., 'Chitose fruits and vegetables are sold in over 70 outlets and served in over 100 restaurants and patisseries across Malaysia, as well as in Singapore and Thailand.' 'We are currently expanding our market share to reach 250 retail outlets and 300 restaurants across the region in three years,' Koike said. He added that Chitose Group is also looking for opportunities to collaborate with local growers in Cameron Highlands and partners who can distribute its sustainable agriculture produce in Kuala Lumpur and other cities in Malaysia. It is working to expand the bioeconomy in Malaysia by leveraging microalgae and advancing circular agricultural practices. Chitose Group is holding an exhibition 'Algal by Matsuri' of algae-based circular manufacturing at the Japan Pavilion of Expo 2025 Osaka Kansai. This exhibition features a diverse range of everyday products made from algae, including clothing, cosmetics, food, paint, PET resin as well as aviation and marine fuels. — Bernama
The Star
15 hours ago
- The Star
Japan PM Ishiba signals intent to stay on despite calls to quit
A supporter of Japan's Prime Minister Shigeru Ishiba holds up a placard as she takes part in a rally across the street from the prime minister's office in central Tokyo on July 25, 2025. - AFP TOKYO: Japanese Prime Minister Shigeru Ishiba signaled he intends to stay in office despite a growing number of calls within the ruling party for him to step down after an election setback last week. "I intend to devote myself to the people and the future of the country,' Ishiba said in an interview with national broadcaster NHK. He added he must take responsibility for implementing the recently announced US-Japan trade deal, and that the real work on it starts now. He is set to speak at a meeting of Liberal Democratic Party lawmakers on Monday (July 28). Party members have been calling on someone to take responsibility for the July 20 elections that saw the LDP lose its majority in Japan's upper house elections. It marks the first time since 1955 that a leader from the storied Japanese party will govern the country without a majority in at least one of the legislative bodies. Former foreign minister Toshimitsu Motegi called for a leadership change within the LDP on his Youtube channel over the weekend. The party needs a "fresh start with a new leader,' he said. Local media reported last week that Ishiba was set to resign, but the prime minister denied the news shortly afterward. Asked by NHK if he had second thoughts about his decision to continue in office, Ishiba said no. While pressure mounted on Ishiba last week, a relatively favourable trade deal for Japan was announced with the US, including the lowering of across-the-board tariffs to 15 from 25 per cent. The deal could offer Ishiba a mark of success that he can leverage to shore up his leadership. A Mainichi newspaper opinion poll conducted July 26-27 after the election defeat showed support for Ishiba's cabinet rose five percentage points to 29 per cent, compared with a month ago. The most number of respondents also ranked Ishiba as the most suitable person to be prime minister, citing the US tariff issues. - Bloomberg
Barnama
17 hours ago
- Barnama
Malaysia-Japan Education Cooperation: 31 MoU/MoA Sealed At Expo 2025 Osaka
PUTRAJAYA, July 27 (Bernama) -- A total of 31 Memoranda of Understanding (MoUs) and Memoranda of Agreements (MoAs) involving 13 strategic fields were signed by 11 Malaysian and Japanese institutions of higher learning(IPTs) during the Malaysian Higher Education Week at Expo 2025 Osaka, held last July 21 to 26. The Ministry of Higher Education (KPT), in a statement today, announced that the 13 strategic fields include medicine, economics, Islamic banking, marine, agriculture and engineering. "They also involve various activities, including student and academic exchange programmes, industrial training, joint research projects and the development of academic programmes in line with industry needs," it said. According to KPT, several business matching sessions were also coordinated by bringing together 11 Malaysian IPTs and 20 foreign companies. It said the business matching session aimed to introduce Malaysian IPTs to the Japanese market while also promoting bilateral cooperation in the fields of research, innovation and product development (R&D). "This programme, which provides a space for interaction, explores the potential for collaboration opportunities such as technology transfer and the development of academic programmes," according to the ministry. With the theme, 'Study in Malaysia', the Malaysian Higher Education Week at Expo 2025 Osaka was rich with impactful content and strategic collaborations, reflecting the KPT's commitment to strengthening international partnerships and promoting the globalisation of Malaysia's higher education sector. Efforts to promote Malaysia as a destination of choice for international students are the main focus of KPT's participation at the Malaysia Pavilion. One of the main initiatives highlighted was the Edutourism programme, which combines education and tourism through 168 packages offered by 55 partners. These packages span 11 main categories, including culture, heritage, food, and travel.
