Couche-Tard withdraws $47 billion bid for Seven & i after deadlock
Canadian retailer Alimentation Couche-Tard has scrapped its $47 billion takeover bid for Japan’s Seven & i Holdings, accusing the 7-Eleven operator of engaging in a “campaign of obfuscation and delay” during negotiations.
The withdrawal marks the collapse of what could have been the largest foreign acquisition of a Japanese company, as Couche-Tard aimed to create a global convenience store giant, News.Az reports, citing Reuters.
“There has been no sincere or constructive engagement from 7&i,” Couche-Tard said in a letter to its board, citing negligible progress despite a non-disclosure agreement and limited management meetings.
Seven & i, in response, expressed disappointment but said it was “not surprised,” rejecting Couche-Tard’s claims of misrepresentation.
The failed deal is widely viewed as a test of Japan’s openness to foreign takeovers, coming just months after Nippon Steel’s contentious $14.9 billion acquisition of U.S. Steel.
Seven & i’s shares dropped 9% in Tokyo trading following the announcement.
Couche-Tard had initially raised its bid to $47 billion last year and offered to increase it further in March if Seven & i cooperated. The Canadian firm also proposed alternative deals, including acquiring all of Seven & i’s international operations and a 40% stake in its Japanese business, but said progress was impossible without “genuine engagement.”
Seven & i countered with a proposal to sell its overseas business in exchange for a stake in Couche-Tard, an option the Canadian company dismissed as failing to deliver value for shareholders.
Under pressure to improve sluggish earnings, Seven & i is pursuing a standalone strategy, which includes a share buyback, divesting non-core assets, and listing its North American convenience store unit.
With Couche-Tard out, analysts doubt other suitors will step in soon. “Given how long this process has taken, I can’t see anyone else coming in with a bid,” one investor told Reuters.
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