Quebec-based convenience store operator Alimentation Couche-Tard Inc. expressed disappointment in the rejection of its takeover offer by the Japanese owner of 7-Eleven, Seven & i. Despite the refusal, Couche-Tard remains committed to reaching a deal with Seven & i, emphasizing the strategic and financial benefits that the proposal offers. Seven & i has stated that it is open to talks if Couche-Tard presents a proposal that fully recognizes its stand-alone intrinsic value and addresses regulatory concerns. However, Seven & i believes that the current offer undervalues the company and is not in the best interest of its shareholders and other stakeholders.
Seven & i has raised concerns about regulatory approval for the deal and called the offer of US$14.86 per share in cash as opportunistically timed. In response, Couche-Tard expressed confidence that further discussions could lead to increased value for Seven & i shareholders. The Quebec company offered to enter a non-disclosure agreement to facilitate information sharing, but this was rejected by Seven & i. Couche-Tard remains focused on reaching a deal with Seven & i that benefits all parties, highlighting their successful track record of acquisitions and working with regulators.
Analysts have previously raised concerns about the possibility of a deal due to the challenges of satisfying Japanese regulators, which may require Couche-Tard to divest some of its assets. However, Couche-Tard had expressed confidence in its ability to finance and complete the proposed deal before Seven & i’s rejection. The CEO of Couche-Tard, Alex Miller, believes there is a strong opportunity for mutual growth and enhancing customer offerings through a potential merger. Couche-Tard currently operates in 31 countries with over 16,800 stores, and acquiring Seven & i could add 85,800 stores to its network.
Despite the setback of Seven & i’s refusal, Couche-Tard is determined to continue pursuing a deal that benefits both companies. The Quebec company has a history of successful acquisitions and working with regulators in various countries. While Japanese regulatory considerations remain a challenge, Couche-Tard believes it can address these concerns effectively. Seven & i, in addition to the 7-Eleven chain, owns a diverse portfolio of businesses including supermarkets, food producers, household goods retailers, and financial services companies.
In conclusion, Alimentation Couche-Tard Inc. remains focused on reaching a deal with Seven & i that aligns with the best interests of all stakeholders. Despite the rejection of its takeover offer, Couche-Tard believes in the strategic and financial benefits of a potential merger with Seven & i. Both companies have expressed a willingness to engage in discussions if a proposal that recognizes intrinsic value and addresses regulatory concerns is presented. While challenges exist in satisfying Japanese regulators, Couche-Tard is confident in its ability to navigate these obstacles and create a compelling outcome for shareholders and employees of both companies.
