Couche-Tard resumes share buyback after scrapping Seven & I acquisition bid

A Couche Tard convenience store is shown in Montreal, Friday, Oct. 5, 2012. THE CANADIAN PRESS/Graham Hughes.

Canada’s Alimentation Couche-Tard on Monday said it was resuming its share repurchase program days after the Circle K-parent scrapped its US$46-billion attempt to buy Japan’s Seven & I.

The company said it would repurchase up to 77.1 million shares worth about $4.2 billion as it works to shore up shareholder value after the months-long effort to buy the Japan-based convenience store chain fell apart.

Couche-Tard, which has a market capitalization of about $15.95 billion, had said last week that it was scrapping its bid for Seven & I as the Japanese retailer refused to engage constructively on the deal. If it had been successful, it would have been Japan’s largest-ever foreign buyout.

Couch-Tard’s stock closed up 8.3% on July 17 when it scrapped the deal for Seven & I. The stock is down about 5% so far this year.

The authorized share buyback program will begin July 23, and continue through July 22, 2026, Couche-Tard said.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Leroy Leo)