Seven & i Holdings, the Tokyo-based operator of 7-Eleven, has rejected a multibillion-dollar acquisition offer from Alimentation Couche-Tard, the Canadian parent company of Circle K.
The bid, which valued Seven & i at $38.5 billion, was deemed too low and failed to address regulatory concerns, according to a statement released on Friday.
Seven & i confirmed that Couche-Tard’s offer of $14.86 per share did not reflect the intrinsic value of its global business, which operates over 83,000 stores worldwide. While open to considering future proposals, the company stressed it would resist any bid that undermines shareholder value or fails to address significant challenges from US antitrust regulators.
Analysts had projected that a merger between 7-Eleven and Circle K would create a dominant player in the US convenience store market, likely triggering regulatory scrutiny. Seven & i noted that Couche-Tard’s proposal lacked sufficient details on how it would navigate these challenges, particularly regarding potential divestitures and regulatory timelines.
The rejection of the offer has drawn attention to Seven & i’s long-term strategy. The company is under pressure to boost shareholder value, particularly after launching a restructuring plan in April aimed at expanding 7-Eleven’s global presence. Some shareholders, including Artisan Partners, have voiced concerns that the management has not taken enough steps to maximize the company’s financial potential.
With input from CNN, CNBC, and the New York Times.
