7-Eleven is playing hard to get by Couche-Tard. The Japanese owner calls the Canadians’ bid too low and fears issues with the antitrust authorities.
Too opportunistic?
That Couche-Tard is launching a takeover bid for rival 7-Eleven right at the time when the Japanese yen is at a historic low does not sit well with parent company Seven & i Holdings. The Japanese holding company responds to the bid of some 38 billion US dollars in a letter. The owner calls the acquisition attempt grossly undervalued and opportunistically timed.
Seven & i Holdings also raises concerns regarding antitrust legislation. The current proposal would not adequately address the risks of a “no-go” from American competition authorities. The transaction would face ‘numerous and significant challenges’, believes Stephen Dacus, the chairman of a committee to assess the bid.
Still, the Japanese are not rejecting the proposal outright. On the contrary, the company explicitly says it is open to any interesting proposal. 7-Eleven hopes Couche-Tard will want to reconsider the bid. If both chains of night and convenience stores were to merge, it would create a giant of more than 100,000 shops in total.
