On Monday, 7-Eleven owner Seven & i Holdings Co. commented on its recent rejection of Alimentation Couche-Tard’s proposal to acquire the company for $38.5 billion.
“We do not believe that the proposal ACT [Couche-Tard] put forward provides a basis for us to engage in substantive discussions regarding a potential transaction,” said 7&i in a statement.
However, despite an allegation made Sunday by Couche-Tard, the 7-Eleven owner did acknowledge its willingness to discuss a potential buyout proposal so long as the offer satisfies 7&i’s board and an independent Special Committee.
“We remain open to engaging in sincere discussions should ACT put forth a proposal that fully recognizes 7&i’s standalone intrinsic value and addresses the Special Committee’s very real regulatory concerns. Unless and until ACT does so, 7&i will focus on executing its business and pursuing the actionable avenues we see to realize and unlock shareholder value in the near- to medium-term.”
On September 5, Stephen Dacus, chairman of 7&i’s board, incited controversy in a public letter to chairman Alain Bouchard of Couche-Tard, alleging that the Special Committee believes the “proposal is opportunistically timed and grossly undervalues” the company. Dacus added that the proposal failed to adequately address legal repercussions that U.S. competition law enforcement agencies may set forth and noted that further discussion would be needed regarding the business’s role in Japan.
In the letter, Dacus also revealed the decision to reject the proposal was unanimous amongst both the convenience chain’s board and Special Committee.
Couche-Tard offered the following response to Dacus’ letter: “… We believe that, working together, we can successfully reach and complete a mutually agreeable transaction. We believe a combination would significantly enhance the important roles our companies play in our customers’ daily lives. Together, we would create a leading global retail platform with over 100,000 sites spanning Asia-Pacific, North America, Australia, and Europe…”
Additionally, the Canadian chain noted in its rebuttal that it would likely increase value for 7&i shareholders, that it would consider divestitures and other needs to ensure regulatory approval, and that it would continue to play the same vital role in communities in Japan as the 7-Eleven owner.
“When entering new markets, Couche-Tard always takes a humble approach. We would respect how 7&i operates in Japan,” said Couche-Tard.
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