7-Eleven Parent Company Declines $39 Billion Acquisition Bid from Canadian Competitor

The parent company of 7-Eleven has turned down a $39 billion (£29.6 billion) takeover bid from Canadian competitor Alimentation Couche-Tard, stating that the offer “grossly undervalues” the company.

In August, Tokyo-based Seven & i Holdings confirmed it had received the bid, potentially setting the stage for Japan’s largest-ever foreign acquisition.

7-Eleven has expanded into one of the world’s largest convenience store chains, with over 84,000 locations in 19 countries, including 13,000 in the US and 22,000 in Japan.

In a letter sent Friday to Couche-Tard, Seven & i rejected the $14.86-per-share cash offer, stating it was “not in the best interest of shareholders and other stakeholders.” While the company expressed concerns over regulatory and competition risks, it signaled a willingness to engage if a higher offer were presented.

“We are open to sincere discussions should you propose a deal that fully reflects our intrinsic value,” wrote Stephen Dacus, chair of Seven & i’s board. However, he added that the current offer did not provide grounds for “substantive discussions.”

Dacus, who heads a special committee reviewing the offer, described Couche-Tard’s bid as “opportunistically timed” and said it significantly undervalued 7-Eleven. Even if the offer were improved, Seven & i cited concerns about potential challenges from US antitrust regulators.

Montreal-based Couche-Tard, which owns Circle K stores across the US, operates over 16,700 locations in 31 countries. The offer follows recent changes in Japanese corporate law, which have made it harder for companies to reject unsolicited bids without consideration.

At Couche-Tard’s annual shareholders meeting on Thursday, executives expressed confidence in their ability to finance and complete the acquisition but acknowledged they have “walked away from many more deals than we’ve closed.”

Speculation has also arisen that 7-Eleven could defend itself by highlighting its vital role in Japan’s disaster response infrastructure, given the country’s frequent earthquakes.

In Friday’s letter, Seven & i acknowledged that Couche-Tard had recognized its importance in Japanese daily life but indicated that further discussion would be needed on the matter if negotiations progressed.