7-Eleven Parent Asks Circle K Owner to Improve $39 Billion Takeover Bid — Update

By P.R. Venkat and Megumi Fujikawa

Japan's Seven & i Holdings said Monday that it would be open to discussions with the Canadian owner of Circle K stores if the latter improves its $39 billion takeover bid.

Seven & i was responding to a statement by Alimentation Couche-Tard, released late Sunday, which called for more talks. Couche-Tard said it was highly confident that discussions would lead to increased value, and it said it had sufficient capacity to finance the transaction in cash.

"We are disappointed in 7&i's refusal to engage in friendly discussions," Couche-Tard said.

Tokyo-based Seven & i, which operates 7-Eleven convenience stores worldwide, last week rejected the offer from Couche-Tard made public last month. Seven & i said the proposal significantly underestimated the company's value and potential.

​Seven & i reiterated that criticism Monday and said the offer didn't represent a practical basis for talks so it didn't sign a nondisclosure agreement as Couche-Tard requested.

"We remain open to engaging in sincere discussions should ACT put forth a proposal that fully recognizes Seven & i's standalone intrinsic value," the Japanese company said.

Seven & i shares rose 2.4% to 2,185 yen, equivalent to $15.35, on Monday amid expectations that Couche-Tard will raise its offer price.

Seven & i reiterated Monday that it believed the proposal needed to sufficiently address regulatory issues. Both companies have large store networks in the U.S., creating possible antitrust issues.

Couche-Tard said it would consider divestitures if needed to secure regulatory approval, adding that it has a history of working successfully with regulators in the U.S. and elsewhere to complete deals.

Couche-Tard had offered to acquire all shares outstanding of Seven & i at $14.86 a share in cash, which would put the value of the deal at about $38.7 billion.

Couche-Tard, or "night owl" in French, has been snapping up competitors around the world and now runs thousands of stores in North America, Europe and Asia. Its best-known brand in the U.S. is Circle K.

Write to P.R. Venkat at Venkat.PR@wsj.com and Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

September 09, 2024 05:20 ET (09:20 GMT)

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