Alimentation Couche-Tard Ups Bid for 7-Eleven Parent Company
LAVAL, Quebec, & TOKYO — Alimentation Couche-Tard Inc. is continuing its efforts to acquire Seven & i Holdings Co Ltd., parent company to 7-Eleven Inc. Seven & i confirmed on Oct. 9 that it had received a revised confidential, private and nonbinding proposal from Couche-Tard.
Anonymous sources familiar with the matter shared that Couche-Tard's revised offer is 22% higher, reaching approximately $47 billion, reported Bloomberg. The retailer's initial proposal was about $38.5 billion, or $14.86 per share.
Seven & i plans to keep negotiations confidential as requested by Couche-Tard, the company said in a statement. Couche-Tard declined to comment.
While there is no guarantee the potential deal will go through, Seven & i leadership may find the revised offer more worth considering, according to experts.
"The increased offer from ACT is far more compelling than the original proposal. Whilst regulatory hurdles remain, the Seven & i board should engage to see if the deal can be progressed," Manoj Jain, cofounder and co-chief operating officer of Hong Kong-based Maso Capital, told Reuters.
Seven & i previously rejected Couche-Tard's nonbinding takeover proposal on Sept. 5. In a letter sent to Alain Bouchard, company founder and executive chairman of Couche-Tard's board of directors, Seven & i stated that the "opportunistically timed" offer "grossly undervalues" its standalone path and additional actionable avenues to realize and unlock shareholder value.
"The board is confident that it can realize and unlock shareholder value through a number of strategic actions, including but not limited to our U.S. business, that we are actively pursuing," wrote Stephen Hayes Dacus, chairman of Seven & i's board of directors.
The company also expressed skepticism that an acquisition could overcome significant regulatory challenges in the United States.
7-Eleven Inc. is No. 1 on the 2024 Convenience Store News Top 100 report. Alimentation Couche-Tard is the No. 2 retailer on the ranking.