Alimentation Couche-Tard makes revised offer for Seven & i Holdings
The convenience store giant behind Circle K is not giving up its hope of taking over the Japanese owner of its international rival, 7-Eleven.
Seven & i Holdings Co. Ltd. said in a Wednesday (Oct. 9) statement that it had received a revised confidential, private and non-binding proposal from Alimentation Couche-Tard.
The Laval, Que.-based business, which also owns stores under the Couche-Tard and Ingo banners, did not immediately respond to a request seeking confirmation of the proposal or details about its value.
Bloomberg and Reuters reported that the new bid values Seven & i at US$47 billion, about 22 per cent higher than an offer of $38.6 billion Couche-Tard made in August.
The Japanese company rebuffed the earlier bid, saying it "grossly undervalues" the potential of its convenience store business, while not fully addressing U.S. regulatory concerns.
The refusal "disappointed" Couche-Tard, which said in September that it remains focused on reaching a deal.
The company argued its proposal offers clear strategic and financial benefits and has said it believes the two companies can reach a mutually agreeable transaction.
For Couche-Tard, there are many benefits to acquiring Seven & i.
Couche-Tard operates across 31 countries, with more than 16,800 stores. A successful deal with Seven & i could add 85,800 stores to its network.
Seven & i owns not only the 7-Eleven chain, but also supermarkets, food producers, household goods retailers and financial services companies.
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Couche-Tard Inc. had said it was "disappointed" in the refusal of its initial takeover offer, but remained focused on reaching a deal.
The company has argued its proposal offers clear strategic and financial benefits and has said it believes the two companies can reach a mutually agreeable transaction.
Analysts have raised concerns about whether a deal was possible due to the difficult task of satisfying Japanese regulators, which could force Couche-Tard to shed some of its assets.
Couche-Tard operates across 31 countries, with more than 16,800 stores. A successful deal with Seven & i could add 85,800 stores to its network.
Seven & i owns not only the 7-Eleven chain, but also supermarkets, food producers, household goods retailers and financial services companies.
