Japanese retail giant Seven & I Holdings has rejected a cash offer from Canada’s Alimentation Couche-Tard to buy the company for $14.86 per share. In a letter addressed to Couche-Tard, Seven & I stated that while it is open to considering proposals, it will resist any offer that does not prioritize the interests of its shareholders or adequately address regulatory concerns.
Seven & I Holdings, with a market capitalization of approximately $39 billion, saw its shares rise by 0.5% in morning trade following news of Couche-Tard’s approach. This potential acquisition would mark the largest foreign takeover of a Japanese company.
Couche-Tard, valued at around $52 billion and known for operating Circle-K convenience stores, made the offer as part of its expansion strategy.
Despite the rejection, Seven & I remains open to sincere proposals that align with shareholder interests and address regulatory considerations. The company’s decision reflects its commitment to protecting shareholder value and ensuring compliance with relevant regulations.
The outcome of this proposed acquisition will be closely watched by industry observers as it could have significant implications for both companies involved and potentially impact the global retail sector more broadly.