Latest news with #7&i
Yahoo
17-07-2025
- Business
- Yahoo
Couche-Tard ends takeover bid for Seven & i
This story was originally published on C-Store Dive. To receive daily news and insights, subscribe to our free daily C-Store Dive newsletter. Dive Brief: Alimentation Couche-Tard has withdrawn its bid to acquire Seven & i, the parent company of 7-Eleven, the convenience retailer announced on Wednesday. Couche-Tard, parent company of Circle K, said it reached this decision due to a 'lack of constructive engagement by Seven & i.' In a separate letter, Seven & i called that a mischaracterization and acknowledged the 'significant changes in the global economy, exchange rates, and financing markets' that likely impacted Couche-Tard's decision. While this ends one of the biggest c-store stories of the past year, both companies have major initiatives at hand, with Couche-Tard integrating GetGo Cafe + Market into its operations while Seven & i prepares to take its North American operations public. Dive Insight: In its final salvo of this acquisition saga, Couche-Tard again took aim at what it called Seven & i's 'persistent lack of good faith engagement.' It outlined a series of what it felt were limited and unproductive meetings and a lack of movement once the two companies signed an NDA and began to seriously pursue a store divestment package that would appease FTC requirements for the deal. 'Since entering into the NDA, 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, including in the July 11, 2025 earnings call in which 7&i noted it is 'seriously' considering our proposal,' Couche-Tard's President and CEO Alex Miller and Chairman of the Board Alain Bouchard said in the letter. Couche-Tard's letter also outlined two alternative transaction structures that the companies put forth. Couche-Tard proposed buying all of Seven & i's non-Japanese operations as well as a 40% stake in 7-Eleven Japan. Seven & i, on the other hand, offered to trade 7-Eleven Inc., its North American branch, for equity ownership in Couche-Tard. 'This structure would not deliver the significant premium that was offered to your shareholders in our transaction proposals and, in our view, would undermine the operational prospects of the combined business,' said Miller and Bouchard in the letter. In its letter, Seven & i highlighted its standalone value creation plan, including the sale of its superstore business and the North American IPO. The proceeds from both would be used to pay for about 2 billion yen ($13.5 million) worth of share buybacks. 'We are also highly focused on moving quickly to improve key areas of our operations to enhance performance metrics over both the medium and longer term,' Seven & i noted in its announcement. Couche-Tard first made a bid for Seven & i last August, which was quickly rejected. The Canadian retailer made a second offer, and the companies slowly proceeded from there, with both sides occasionally accusing the other of slowing down the process. Antitrust concerns in the U.S. were among the biggest issues for Seven & i, but with Couche-Tard's decision to back out, the deal failed before facing those questions. With its bid for Seven & i withdrawn, Couche-Tard can now turn its attention to integrating GetGo's 270 c-stores, which it bought from grocer Giant Eagle for $1.6 billion last month. Recommended Reading Fueling Up: 7-Eleven and Couche-Tard have tons of stores to sell. Who's buying? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
17-07-2025
- Business
- The Star
Couche-Tard pulls US$47 billion takeover bid for Seven & i
A man walks past the logo of 7-Eleven displayed at their convenience store in Tokyo, Japan March 6, 2025. - Reuters 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
Business Insider
17-07-2025
- Business
- Business Insider
Alimentation Couche-Tard withdraws takeover proposal for Seven & i
Alimentation Couche-Tard (ANCTF) announced that it has withdrawn its proposal to acquire Seven & i Holdings (SVNDY) due to a lack of constructive engagement by Seven & i. Couche-Tard sent the following letter to the Board of Directors: 'We continue to believe that a combination of Seven & i Holdings and Alimentation Couche-Tard would create a global leader in convenience with the ability to better serve our stakeholders, grow the 7-Eleven brand and generate value for our respective shareholders. As you know, earlier this year we submitted a proposal of JPY2,600 per ordinary share in cash, representing a 47.6% premium to your unaffected stock price. We have, for some time, tried to engage with your Special Committee on this proposal through constructive, friendly discussions in which we have clearly demonstrated that our proposal is fully financed and that there is a clear path to gaining regulatory approvals. We have repeatedly sought a friendly dialogue with the Ito family but they have not been open to any conversation. We also stated that there may be an opportunity to enhance the economic terms of our proposal if we are afforded access to additional diligence information. We have been very patient and respectful throughout this process, beginning with our meeting on July 23, 2024. Following our meeting in Tokyo with Hachiuma-san and Yonamine-san on April 18, 2025, we entered into a non-disclosure agreement containing customary standstill provisions, in the belief that 7&i would engage constructively with us to determine whether a transaction could be agreed. Since entering into the NDA, 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, including in the July 11, 2025 earnings call in which 7&i noted it is 'seriously' considering our proposal. As discussed below in detail, the quantity and substance of the permitted due diligence, including at two tightly constrained management meetings, have been negligible. Rather, you have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7&i and its shareholders. We believe this approach reinforces our concerns about your approach to governance. Based on this persistent lack of good faith engagement, we are withdrawing our proposal.' Elevate Your Investing Strategy:
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Business Standard
17-07-2025
- Business
- Business Standard
Canada's Couche-Tard abandons $46 billion bid to buy 7-Eleven owner
In a statement, Seven & i said was it was disappointed by Couche-Tard's decision to walk away, but said it disagreed with the numerous mischaracterisations in Canadian suitor's letter Bloomberg Canada's Alimentation Couche-Tard Inc. has abandoned its ¥6.77 trillion ($45.8 billion) bid to buy Seven & i Holdings Co., saying the Japanese operator of 7-Eleven convenience stores had refused meaningful engagement during the almost yearlong pursuit. '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 Seven & i's board, released late Wednesday. Seven & i's stock plunged as much as 9.6 per cent in early trading in Tokyo on Thursday. The Japanese retailer has sought to make a case for remaining independent and has made sweeping changes, appointing Stephen Dacus as chief executive officer, making a deal to sell its superstore business for $5.4 billion, and proposing a ¥2 trillion share buyback and a listing of its US business. In a statement, Seven & i said was it was disappointed by Couche-Tard's decision to walk away, but said it disagreed with the 'numerous mischaracterisations' in Canadian suitor's letter. The Japanese company also said it remains 'fully committed to our standalone value creation plan' and will move quickly to improve key areas of its operations. 'The moat of Japanese protectionism proved too much for Couche-Tard to cross,' Andrew Jackson, head of Japan equity strategy at Ortus Advisors, wrote in a note. 'It was always highly unlikely that this was going to be successful given Seven & i's positioning as one of Japan's most successful global companies and the fast closing of the ranks.' The abandonment of the bid, which would have been the biggest-ever foreign takeover of a Japanese company, deals a setback to hopes of greater corporate openness in a country where executives have long been able to display more indifference to shareholder demands for higher valuation than in other places. Before the proposal to buy Seven & i became public, an attempt to acquire such a well-known Japanese business at such scale was seen as audacious and unlikely, given the protectionist tendencies of the government and corporate boards prioritizing stability over shareholder value. That view may remain in place for a while, despite changes to corporate guidelines aimed at injecting more vigor into corporate Japan through improved governance and protections for investors. Couche-Tard, which operates Circle K stores globally, disclosed that it has proposed alternate arrangements for a deal, including buying the Seven & i's international business and taking a minority stake in the Japanese business. Bouchard, who co-founded Couche-Tard, said in March that there was a possibility of 'enhancing' the buyout proposal with better access to financial information. Since then, the two parties signed a non-disclosure agreement to share information, but Couche-Tard said in the letter that the level of engagement wasn't enough. Most of the information shared by Seven & i was minimal or already publicly available, and meetings with management were superficial, or tightly scripted, Couche-Tard said. 'None of our critical questions were answered,' the company said. In one meeting in Dallas, Couche-Tard said a Seven & i executive who attempted to 'thoughtfully address' a question related to international licensees was interrupted and rebuked by Dacus, who pointed to his head as if to remind his colleague to 'think.' Seven & i has cited concerns over potential pushback from US antitrust regulators over any deal to combine with Couche-Tard. In order to address this risk, the two sides agreed earlier this year to seek potential buyers for about 2,000 North American convenience stores. Although several parties expressed interest in acquiring the stores, Seven & i didn't share required information with potential buyers, Couche-Tard said. There will now be greater pressure on Seven & i's management to deliver after Couche-Tard's withdrawal, according to Bloomberg Intelligence analyst Lea El-Hage. 'Its August strategy update will be key to demonstrating its standalone plan can generate more value than the rejected acquisition,' El-Hage wrote in a note, referring to a management update planned by Seven & i next month.
New Straits Times
17-07-2025
- Business
- New Straits Times
Couche-Tard scraps US$47bil takeover bid for Japan's Seven & i
TOKYO: Canadian retailer Alimentation Couche-Tard said on Wednesday it was withdrawing its US$47 billion takeover bid for Seven & i Holdings , citing a lack of constructive engagement by the Japanese retailer. The surprise move marks the collapse of what could have been the largest foreign takeover of a Japanese company as Circle K operator Couche-Tard sought 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 said in a statement that "while we are disappointed by ACT's decision, and disagree with their numerous mischaracterisations, we are not surprised." Seven & i is widely 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 US Steel in a US$14.9 billion transaction. Seven & i shares were untraded amid a glut of sell orders. "We are very disappointed in what appears to be a lack of willingness to engage from 7&i," said Manoj Jain, co-founder and co-CIO of Hong Kong-based Maso Capital. "We believe there is significant value to be realised in a combination and have expressed this view to the management and the board." Couche-Tard raised its offer to US$47 billion from US$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 approach appeared to be gathering steam after a US$58 billion white-knight bid from Seven & i's founding Ito family ended after failing to get financing. Couche-Tard said it had sought to speak to the family but found them unwilling to engage. The two companies inked a non-disclosure agreement (NDA) 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. ALTERNATIVE PROPOSALS NIXED Couche-Tard said it believed a full combination of the two companies would maximise value for shareholders but had also explored alternatives. The retailer said it had offered to acquire all of 7&i's business outside of Japan and 40 per cent 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.
