:max_bytes(150000):strip_icc()/GettyImages-2161850912-0defe9638e5b4d0bbc8b34a0a154740e.jpg "7-Eleven’s Owner Turned Down a Takeover Bid — But It’s Open to Offers")
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Key Takeaways
- Japan’s Seven & i rejected a $39 billion takeover bid from Canada’s Alimentation Couche-Tard.
- The rejection leaves the 7-Eleven chain operator open to another bid by the owner of the Circle K convenience store brand.
- The Tokyo-based firm said that Alimentation Couche-Tard’s offer “grossly undervalues” the company and doesn’t issue antitrust concerns.
Japan’s Seven & i rejected a $39 billion takeover by Canada’s Alimentation Couche-Tard, though the 7-Eleven chain operator remained open to another bid by the owner of the Circle K convenience store brand.
The Tokyo-based firm said that Alimentation Couche-Tard’s offer “grossly undervalues” the company and that the Canadian proposal doesn’t fully take into account the antitrust hurdles the deal would have to overcome.
Rejected Deal Would Have Been Biggest Japanese Takeover
“We are open to sincerely consider any proposal that is in the best interests of 7&i shareholders and other stakeholders; however, we will resist any proposal that deprives our shareholders of the company’s intrinsic value or that fails to specifically address very real regulatory concerns,” Stephen Dacus, chairman of Seven & i’s board, said in a statement.
The deal would have been the biggest takeover by a foreign company targeting a Japanese firm. A $22 billion takeover last year by drugmaker Merck & Co. (MRK) for rights to jointly develop and commercialize three of Daiichi Sankyo’s candidate cancer drugs is currently the largest, according to data provider Dealogic.
Alimentation Couche-Tard trades over-the-counter in the U.S. using the symbol ANCTF. Seven & i’s (SVNDY) U.S.-listed shares rose more than 1% in recent trading.