Couche-Tard’s chief stresses ‘friendly’ interest in Japan’s 7-Eleven chain

A Couche-Tard convenience store is seen in Montreal, Thursday, Sept. 5, 2024. THE CANADIAN PRESS/Christinne Muschi

Canada’s Alimentation Couche-Tard reaffirmed Thursday that it is determined to acquire Seven & i Holdings, although the operator of Japan’s top convenience store chain has rejected its offer.

“We are continuing to pursue a friendly, mutually agreeable transaction,” the chairman and founder of Alimentation Couche-Tard, Alain Bouchard, told reporters in Tokyo.

Bouchard stressed that his company was pursuing a “friendly” transaction, not a hostile takeover.

He reiterated his promise to retain local management, saying the merger would be good for 7-Eleven’s business.

The chain has more than 20,000 stores nationwide and more than 80,000 outlets around the world, serving an estimated 63 million customers a day, according to Tokyo-based Seven & i Holdings Co.

In rejecting the Canadian company’s offer, Seven & i Holdings said it intends to boost its own corporate value.

It also has raised antitrust concerns that it says will come up in the U.S.

Seven & i appointed a new chief executive this month and announced a share buyback and said it will sell its supermarket subsidiary to U.S. private equity firm Bain Capital, to help boost its value and fend off the acquisition.

Last year, Couche-Tard, which operates Circle K stores, proposed acquiring all of Seven & i Holdings shares for $14.86 per share in cash.

Media reports now say the offer is for $18.19 per share, or about 7 trillion yen ($47 billion).

Seven & i has made public a letter that Stephen Dacus, its new chief executive, sent to Bouchard in September, explaining why it was rejecting the Canadian company’s offer.

“The proposal is not in the best interest of 7&i shareholders and other stakeholders. We are open to engaging in sincere discussions should you put forth a proposal that fully recognizes our standalone intrinsic value,” Dacus wrote.

Convenience stores, known as “conbini” in Japan, are popular, offering various services such as paying utility bills and selling concert tickets, while selling various everyday goods.

Seven & i announced a restructuring plan last year to strengthen its U.S. business and streamline operations, closing some Ito-Yokado supermarkets in Japan.

In 2023, Seven & i sold its Sogo & Seibu department stores in Japan to Fortress Investment Group, a U.S. fund, for $1.5 billion.

Couche-Tard, founded in 1980 in Quebec, offers coffee, beer, snacks, fuel and lottery tickets.

It runs more than 16,800 stores worldwide, including in the U.S., Europe and Asia.

Yuri Kageyama, The Associated Press