Since Alimentation Couche-Tard expressed interest in acquiring 7-Eleven parent company Seven & i Holdings (7&i) in August, the industry has been buzzing with rumors and speculation. One possibility that we can write off, according to a recent report from Reuters, is a hostile takeover bid from Couche-Tard.
Couche-Tard Chairman Alan Bouchard has reportedly confirmed that a hostile bid “was not among factors being considered,” he told Japanese media on Thursday. The company is still, however, interested in pursuing an amicable deal with 7&i.
Bouchard also told a Yomiuri newspaper that this is the third time in total that Couche-Tard has reached out to 7&i about a potential takeover, with the other offers coming in 2005 and 2020.
Couche-Tard’s most recent bid to acquire the Japanese c-store giant came in at $47 billion, which would mark the largest-ever foreign takeover of a Japanese company. There are conflicting offers, however, as just last week a new bid of $58 billion came in from a member of the founding family.
The offer is from Ito-Kogyo, a company with links to Vice President Junro Ito and a top shareholder for 7-Eleven. The offer is non-binding and under review by the same special committee that reviewed the Couche-Tard bid.
“The special committee, which is comprised solely of the company’s independent, outside directors, has been reviewing the proposal carefully and thoroughly with its financial and legal advisors,” 7&i noted in a statement. “Mr. Ito has been excluded from all discussions within the company, including board discussions, relating to any proposal from Mr. Ito and Ito-Kogyo, Alimentation Couche-Tard or any other competing proposals.”
Reuters did report, however, that talks between Couche-Tard and 7&i have progressed, which is notable since the Japanese company was originally hesitant to enter an open discussion.
“We are committed to an objective review of all alternatives before us as we consider proposals from Mr. Ito and Ito-Kogyo, from (Couche-Tard), as well as the company’s stand-alone opportunities to unlock shareholder value,” said Stephen Hayes Dacus, chair of the special committee and board of directors for the company. “The special committee and the company board will continue to engage with all parties in a manner designed to maximize value and will continue to act in the best interests of the company’s shareholders and other stakeholders.”
