Alimentation Couche-Tard makes revised offer for Seven & i Holdings

MONTREAL — Alimentation Couche-Tard Inc. has made a new offer for the Japanese owner of 7-Eleven.

In a statement, Seven & i Holdings Co. Ltd. said Wednesday it has received a revised confidential, private and non-binding proposal from the Canadian convenience store operator.

The Japanese company turned down an earlier offer by Couche-Tard valued at the time at about US$38.6 billion.

Seven & i had said the earlier proposal undervalued the potential of its convenience store business, while not fully addressing U.S. regulatory concerns.

The Japanese company did not disclose the terms of the revised offer, but said it will continue to act in the best interest of its shareholders and other stakeholders.

Seven & i added it plans to keep its talks with Couche-Tard confidential, as requested by the Quebec-based company.

Couche-Tard Inc. had said it was “disappointed” in the refusal of its initial takeover offer, but remained focused on reaching a deal.

The company has argued its proposal offers clear strategic and financial benefits and has said it believes the two companies can reach a mutually agreeable transaction.

Analysts have raised concerns about whether a deal was possible due to the difficult task of satisfying Japanese regulators, which could force Couche-Tard to shed some of its assets.

Couche-Tard operates across 31 countries, with more than 16,800 stores. A successful deal with Seven & i could add 85,800 stores to its network.

Seven & i owns not only the 7-Eleven chain, but also supermarkets, food producers, household goods retailers and financial services companies.

This report by The Canadian Press was first published Oct. 9, 2024.

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The Canadian Press