7-Eleven parent company rejects Couche-Tard's buyout offer

Seven & i Holdings stated that the offer "grossly undervalues" the brand’s position and future opportunities within the convenience store market.

Seven & i Holdings, the Japanese parent company of 7-Eleven, has formally rejected Canadian convenience store giant Alimentation Couche-Tard’s acquisition proposal.

In its official statement, the company acknowledged its openness to consider "any proposal that is in the best interests of its shareholders and other stakeholders." However, it declined Couche-Tard’s offer, citing concerns about both valuation and regulatory hurdles.

Seven & i stated that the offer "grossly undervalues" 7-Eleven’s position and future opportunities within the convenience store market.

According to a report first published by Nikkei Asia, Couche-Tard’s bid included an all-cash offer of slightly under $15 per share, bringing the total proposed acquisition price to approximately $40 billion.

"We believe that the proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from U.S. competition law enforcement agencies in the current regulatory environment," states the official press release published by Seven & i Holdings.

On August 19, Couche-Tard, the owner of Circle K, submitted a bid to acquire Seven & i. In response, the company’s board of directors formed a special committee of independent outside directors, led by Stephen Hayes Dacus, to thoroughly review the proposal.

Couche-Tard’s move follows its acquisition of a majority stake in TotalEnergies' fuel retail and convenience store operations across Europe. This deal expanded the company's retail network to approximately 16,800 stores across North America, Europe, and Asia, according to its official website.

Seven & i Holdings employs around 77,000 people globally, with the majority of its sales coming from its convenience store operations overseas, according to LSEG data.