- Circle K owner Alimentation Couche-Tard Inc. (TSX:ATD) is still pushing the Japanese owner of 7-Eleven, Seven & i Holdings (PINL:SVNDF), to sign its takeover deal even after being rejected
- Couche-Tard explained its case, stating in a release it has “[A] strong conviction that a combination with 7&i has clear strategic and financial benefits for both companies’ customers, employees, franchisees and shareholders”
- Seven & i quickly issued a brief response indicating its willingness to negotiate if Couche-Tard presents a proposal that “[F]ully acknowledges Seven & I’s intrinsic standalone value”
- Alimentation Couche-Tard Inc. (TSX:ATD) last traded at C$76.86 per share and has risen 7.50 per cent since this time last year
Québec-based convenience store operator Alimentation Couche-Tard Inc. (TSX:ATD) isn’t taking “no” for an answer.
The Circle K owner is still pushing the Japanese owner of 7-Eleven, Seven & i Holdings (PINL:SVNDF) to sign its takeover deal even after being rejected.
After its public rejection, Couche-Tard explained its case in a news release. Its team stated it has “[A] strong conviction that a combination with 7&i has clear strategic and financial benefits for both companies’ customers, employees, franchisees and shareholders.”
Seven & i quickly issued a brief response indicating its willingness to negotiate if Couche-Tard presents a proposal that “[F]ully acknowledges Seven & I’s intrinsic standalone value.”
In addition to price considerations, both companies have pointed out potential challenges related to anti-competition regulatory scrutiny, which might necessitate divestments. This potential deal would create a global convenience store giant with more than 100,000 locations and mark the largest foreign acquisition of a Japanese company. It would also serve as a significant test of whether Japan’s environment for mergers and acquisitions has become more favourable.
Back in August, Couche-Tard submitted a friendly, non-binding proposal to Seven & i Holdings. The deal was valued at a potential equivalent of US$31 billion via media reports, and 7-Eleven reached peak revenue last year of US$5.5 billion, according to Zippia. Seven & i Holdings rejected the offer last week, stating the offer proposal “grossly” undervalued its intrinsic value.
Alimentation Couche-Tard Inc. operates in 31 countries and territories, with more than 16,700 stores, of which approximately 13,100 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States.
Alimentation Couche-Tard Inc. (TSX:ATD) last traded at C$76.86 per share and has risen 7.50 per cent since this time last year.
Join the discussion: Find out what everybody’s saying about this stock on the Alimentation Couche-Tard Bullboard, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image: Alimentation Couche-Tard Inc.)