Canada’s Couche-Tard abandons bid to acquire parent company of 7-Eleven
Alimentation Couche-Tard is walking away from its yearlong pursuit to acquire the Japanese owner of 7-Eleven.
The Canada-based global convenience store and fuel operator is withdrawing its $46 billion proposal to acquire Seven & i Holdings Co., citing a “lack of constructive engagement” by Seven & I (7&i). Couche-Tard, whose portfolio includes Circle K, first proposed the deal in August 2024.
Seven & i rebuffed the bid, saying it “grossly” undervalued the company. The Canadian firm subsequently improved the offer. The two companies reportedly had entered more serious discussions earlier this year.
"There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives," Alex Miller, president and CEO of Alimentation Couche-Tard, and Alain Bouchard, founder and executive chairman of the board, wrote in a letter to the Japanese company's board. "Rather, you have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7&i and its shareholders.”
Among other things, Couche-Tard said that documents it received from Seven & i lacked key information and that executives were no-shows at meetings.
In response, Seven & i said in a statement that it was “disappointed” by Couche-Tard’s decision. The company said the Couche-Tard letter contained “numerous inaccurate statements” and that its special committee had engaged in “sincere and constructive discussions.”
“The Special Committee consistently engaged in good faith and constructively with ACT [Alimentation Couche-Tard Inc.] to explore the possibility of reaching a deal that could be consummated and that would benefit our shareholders,” stated Seven & i. “At the same time, we were always honest about the extraordinary antitrust hurdles a potential transaction would face, including the protracted timeframe to move through the regulatory process.”
In May, Couche-Tard and Seven & i entered into a nondisclosure agreement to advance discussions and began looking for potential buyers to acquire of their overlapping U.S. convenience stores in a move to mitigate antitrust concerns that Seven & i management believed could block regulatory approval.
In its letter, Couche-Tard said it continues to believe that there is “a clear path to U.S. regulatory approval.” But it noted that without “genuine further engagement,” it could not effectively pursue its plans.
Alimentation Couche-Tard has more than 16,700 stores in 29 countries and territories. Seven & i’s 7-Eleven operation counts more than 85,000 stores in Japan, the U.S. and Europe.
