- What Couche-Tard’s offer to acquire Seven & i, owner of 7-Eleven, has been turned down
- Why Proposal viewed as “not in the best interest” of shareholders
- What next Québec-based company still confident in completing the deal
Alimentation Couche-Tard’s US$38.5bn ($52.2bn) offer to take over Seven & i Holdings, the parent company of 7-Eleven, has been rejected.
Stephen Dacus, chair of the special committee tasked with reviewing the Laval, Qué.-based company’s offer, said the proposal was “not in the best interest of Seven & i shareholders and other stakeholders” and “grossly” undervalues the company.
The Tokyo-based company disclosed that Couche-Tard offered US$14.86 per share in cash to acquire all of Seven & i’s outstanding shares.
“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,” Dacus said.
He noted that even if Couche-Tard were to increase its offer “very significantly,” Seven & i would still be concerned about “multiple and significant challenges” under U.S. competition laws.
According to Reuters, Couche-Tard chief executive Alex Miller said his company is confident in its ability to finance and complete the deal.
Couche-Tard first attempted to acquire the convenience store chain in 2005. A deal was also floated in 2020.
