TOKYO: The Japanese owner of 7-Eleven said on Friday (Sep 6) it had rejected a takeover bid from retail giant Alimentation Couche-Tard (ACT), saying the proposal “grossly undervalues” the company.
As the world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally.
A letter from the board of Seven & i Holdings to its Canadian rival said it was open to “engaging in sincere discussions should you put forth a proposal that fully recognises our standalone intrinsic value”.
“We do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction,” it said.
The purchase of Seven & i Holdings would be the biggest-ever foreign takeover of a Japanese firm.
Such a merger would create an international convenience store behemoth combining 7-Eleven, Couche Tard, Circle K and other brands across Asia, North America and Europe.
Seven & i has a market value of around ¥5.6 trillion (US$39 billion). 7-Eleven stores are a beloved institution in Japan, selling everything from ready-made meals to umbrellas.
The board’s letter said ACT’s offer was US$14.86 per share in cash.
ACT operates more than 16,700 outlets in 31 countries and territories.
