Couche-Tard persists in US$47-billion takeover bid for Seven & i

In Japan, Alimentation Couche-Tard Inc. has made a substantial bid to acquire Seven & i Holdings Co., a prominent retailer known for its 7-Eleven stores. Couche-Tard, which owns Circle K, is proposing around US$47-billion for the acquisition, aiming to enhance its product offerings and strengthen its position in a highly competitive market. Despite this aggressive offer, the founding Ito family, which holds approximately 8% of Seven & i, is putting forth a competing management buyout proposal valued at about 9-trillion yen (around US$58.6-billion), indicating their refusal to sell at the current offer. The response from Seven & i’s board includes a special committee that is presently evaluating all proposals. Couche-Tard’s intention to maintain a friendly approach towards the acquisition reflects its confidence in the strategic benefits of a merger, especially in a fragmented industry like retail. This bid represents the largest ever from a non-Japanese company targeting a Japanese firm. The ongoing pressure from lower consumer spending in key regions has impacted both companies, but Couche-Tard continues to report better performance compared to its competitors. With the backing of major financial entities, the Ito family's proposal is also bolstered, complicating the situation for Couche-Tard as it seeks to capture the lucrative retail sector in Japan under a unified operation.