Couche-Tard withdraws $47 billion bid for 7-Eleven amid stalled negotiations
- Alimentation Couche-Tard publicly withdrew its acquisition proposal for Seven & i Holdings following dissatisfaction with negotiation processes.
- The Canadian company’s bid included a premium offer per share but faced rejection from the Japanese firm.
- Seven & i must now focus on internal reforms and shareholder value amidst potential future challenges.
On July 16, 2025, Alimentation Couche-Tard, a Canadian retail chain, announced its decision to withdraw its proposal for acquiring Seven & i Holdings Co., the Japanese operator of 7-Eleven convenience stores. This decision came after the Canadian company expressed frustration over what it termed as a lack of constructive engagement from Seven & i during the negotiation process. Couche-Tard highlighted issues such as missing information in documents provided by Seven & i and a lack of attendance by their executives in scheduled meetings, leading to further discontent. The initially proposed deal, which amounted to approximately $45.8 billion, was considered a significant step in global retail consolidation, as it would have marked the largest foreign takeover of a Japanese company to date. Couche-Tard's offer included a cash proposal of 2,600 yen per share, representing a notable premium over the existing stock price at that time. However, Seven & i Holdings had previously rejected an earlier offer of 2,200 yen per share, indicating an ongoing reluctance to entertain the acquisition under terms that were deemed unfavorable to them. Following Couche-Tard's withdrawal from negotiations, Seven & i expressed disappointment, arguing that discussions had indeed been conducted in good faith. They asserted that they remain committed to creating standalone value and focus on their North American convenience store business strategy. Investors are now closely watching how new CEO Stephen Hayes Dacus will manage the company, considering recent comments that suggested a need for reform and value enhancement. The investment community speculates that the failure of this acquisition could leave Seven & i vulnerable to further external pressure and future bids from other retailers and investors. The firm is also grappling with its share price performance, which has slipped recently, raising concerns over its management effectiveness and strategic direction. With Couche-Tard's departure from the table, the spotlight is now firmly on Seven & i’s ability to implement a successful turnaround strategy while addressing investor expectations regarding its financial health and market position.