Tokyo (AFP) – The directors of Canadian convenience store giant Alimentation Couche-Tard (ACT) said on Thursday they were seeking a “friendly” buyout of 7-Eleven but lamented a lack of progress towards a deal. Seven & i, the Japanese parent company of 7-Eleven, the world’s biggest convenience store brand, rebuffed an ACT takeover offer worth nearly $40 billion last year. Despite a sweetened bid reportedly worth around $47 billion, Seven & i announced last week measures including a huge share buyback to boost its value and fend off ACT.
“We are continuing to pursue a friendly, mutually agreed transaction,” ACT chairman Alain Bouchard told reporters in Tokyo. It would be the biggest foreign takeover of a Japanese firm, merging the 7-Eleven, Circle K, and other franchises to create what CEO Alex Miller described on Thursday as a “global champion of convenience stores”. Seven & i said in September after ACT’s initial approach that its rival had “grossly” undervalued its business and warned the deal could face regulatory hurdles in the United States.
The pair have said they are exploring US store sell-offs to address antitrust concerns ahead of any potential merger, but Bouchard said this wasn’t enough. “We are disappointed that this engagement has been limited to regulatory only and we have not been able to make progress on broader deal discussion,” he said. Seven & i operates some 85,000 convenience stores worldwide. Around a quarter of those outlets are in Japan, where they sell everything from concert tickets to pet food and fresh rice balls, although sales have been flagging. ACT runs nearly 17,000 convenience store outlets globally, including Circle K.
Miller reiterated on Thursday that the retailer sees “a clear path to regulatory approval in the United States.” That was because the ACT and 7-Eleven networks in the world’s biggest economy were “highly complementary,” he said. Miller also addressed concerns that ACT ownership of Seven & i would affect the quality of 7-Eleven stores in Japan, which have been a local lifeline in times of disaster. “We are going to invest in Japan,” Miller said. “We have no interest and no plans to close stores, fire employees. That’s not what we do. We invest to grow.”
© 2024 AFP
