The Japanese parent company of 7-Eleven has turned down a $38 billion (£29.2 billion) acquisition offer from Canadian competitor Alimentation Couche-Tard (ACT). In a letter to ACT, Seven & i Holdings criticized the bid as significantly undervaluing the company and raising regulatory concerns. Despite rejecting the offer, Seven & i Holdings has expressed a willingness to negotiate and consider a more favorable proposal. ACT has yet to respond to a request for comment from BBC News.
“The Special Committee believes that your proposal is opportunistically timed and grossly undervalues our standalone path and the additional actionable avenues we see to realize and unlock shareholder value,” Seven & i’s letter said, referring to a special committee it formed to consider the offer.
ACT’s offer comes during a period of notable weakness in the Japanese yen against the US dollar, which has made Seven & i Holdings more accessible to international buyers.
“Your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from US competition law enforcement agencies,” Seven & i’s letter added.
7-Eleven is the largest convenience store chain globally, operating 85,000 locations across 20 countries and territories. If the deal were to proceed, ACT’s presence in the US and Canada would more than double, reaching approximately 20,000 sites.