Seven & i Remains Open To Couche-Tard Buyout Talks If Offer Is Fair

Seven & i Holdings Co. said is open to discussions with Canadian convenience store giant Alimentation Couche-Tard Inc. regarding a buyout offer, provided any new proposal fairly values the Japanese company and avoids regulatory concerns, Kyodo News reported.

Couche-Tard said Sunday that it was "disappointed" in Seven & i's refusal to engage in discussions over the $38.7 billion acquisition offer but noted that it was "ready and willing" to "advance friendly discussions." I Photo: Real Estate Japan

"We remain open to engaging in sincere discussions should ACT put forth a proposal that fully recognizes Seven & i's standalone intrinsic value," the company said in a press release after it slammed the takeover bid as "grossly" undervaluing the major Japanese retailer in a letter.

Couche-Tard said Sunday that it was "disappointed" in Seven & i's refusal to engage in discussions over the $38.7 billion acquisition offer but noted that it was "ready and willing" to "advance friendly discussions."

"We stand ready to enter into collaborative and friendly discussions with 7&i to focus on finding greater value for 7&i and its shareholders," it said.

"We are highly confident that we have sufficient capacity to finance the transaction in cash and that financing would not be a condition to closing a transaction."

On regulatory concerns raised by the operator of Seven-Eleven convenience stores, Couche-Tard said Sunday that it would "jointly consider divestitures that may be required to secure regulatory approvals."

Both Couche-Tard’s and Seven & i's stores operate in the U.S., raising concerns about potential U.S. antitrust law violations.

The Canadian company, which operates brands including Couche-Tard and Circle K, has about 17,000 stores in over 30 countries and regions, including Canada and the U.S. Seven & i operates more than 80,000 Seven-Eleven convenience stores worldwide.