Seven & i Accuses Couche-Tard of Misrepresenting Negotiations
The parent company of 7-Eleven, Seven & i Holdings, has issued a firm response to Couche-Tard’s explanation for the breakdown of their takeover negotiations. In a letter released Tuesday, the Japanese conglomerate criticized the Canadian retailer for mischaracterizing the nature of the discussions and failing to address regulatory risks adequately.
Couche-Tard had announced the termination of its yearlong bid to acquire Seven & i, citing a lack of sincere engagement. Seven & i denied this, stating it held multiple meetings and engaged in good faith, despite the deal facing significant regulatory hurdles. The company emphasized that Couche-Tard never presented a credible divestiture strategy to satisfy antitrust concerns.
Regulatory Hurdles and Unanswered Questions
Seven & i argued that the merger would have required major asset sales to receive regulatory clearance, but Couche-Tard did not provide a feasible plan on how this would be accomplished. Although Couche-Tard claimed it had received interest from potential buyers for divested assets, Seven & i said it did not receive sufficient details to progress those talks.
Additionally, the Japanese company refuted claims of delaying tactics, calling such accusations part of a broader campaign by Couche-Tard to cast doubt on its governance. It defended its management structure and cultural norms, arguing that critiques of scripted meetings showed a lack of cultural understanding of the Japanese business environment.
Deal Timeline and Shifting Strategies
Initial contact between the two firms began in mid-2024, with a public bid soon after. Seven & i rejected Couche-Tard’s first offer, reportedly worth $38.6 billion, prompting a revised offer estimated around $47 billion. Talks were temporarily derailed by a management buyout attempt from a founding family member, which later collapsed. Despite this, discussions resumed early this year.
In the interim, Seven & i announced a strategic divestiture of non-core businesses to Bain Capital and a planned IPO of its North American 7-Eleven operations. These moves indicated the company’s intent to remain independent and reshape its corporate structure without merging with Couche-Tard.
Economic Pressures and Market Reactions
Seven & i acknowledged Couche-Tard’s own financial challenges, citing changes in capital markets and rising operational pressures as likely influences on the Canadian firm’s decision to abandon the deal. Despite Couche-Tard’s complaints, Seven & i maintained that external conditions, not negotiation failures, were at the heart of the decision.
Following the withdrawal of its bid, Couche-Tard’s share price rose to approximately $77, bringing its market capitalization to nearly $73 billion. This rebound suggests investor approval of the decision to step back from the complex and costly acquisition.
