TOKYO: The Japanese owner of 7-Eleven said on Friday (Sep 6) it had rejected a takeover bid from retail giant Alimentation Couche-Tard (ACT), saying the proposal “grossly undervalues” the company.
As the world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally.
A letter from the board of Seven & i Holdings to its Canadian rival said it was open to “engaging in sincere discussions should you put forth a proposal that fully recognises our standalone intrinsic value”.
“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,” it said.
The purchase of Seven & i Holdings would be the biggest-ever foreign takeover of a Japanese firm.
Such a merger would create an international convenience store behemoth combining 7-Eleven, Couche Tard, Circle K and other brands across Asia, North America and Europe.
Seven & i has a market value of around ¥5.6 trillion (US$39 billion). 7-Eleven stores are a beloved institution in Japan, selling everything from ready-made meals to umbrellas.
The board’s letter said ACT’s offer was US$14.86 per share in cash.
ACT operates more than 16,700 outlets in 31 countries and territories.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)