Alimentation Couche-Tard (ACT), a Canadian multinational convenience store operator, has raised its acquisition offer for Japan’s Seven & i Holdings by 22% to around $47 billion.
The revised proposal, which values the 7-Eleven owner at $18.19 per share, comes after an earlier offer of $38.5 billion was rejected by Seven & i.
If completed, this would mark the largest-ever overseas buyout of a Japanese company, surpassing previous foreign investments in the region.
The offer comes amid growing pressure from foreign investors, including ValueAct Capital and Artisan Partners, who are pushing Seven & i to refocus on its core business—its global 7-Eleven convenience store operations.
Seven & i has also hinted at selling parts of its non-core assets, including banking and supermarket divisions, to streamline operations and enhance shareholder value.
Despite the increased offer, concerns remain over regulatory hurdles, and the Japanese retail giant’s board has yet to fully engage with ACT on whether the deal will proceed.
New $47 billion bid for Seven & i signals largest Japanese buyout
Alimentation Couche-Tard (ACT), the owner of Circle-K, has presented an improved offer of approximately $47 billion to acquire Seven & i Holdings, marking a 22% increase from its previous bid.
This move could lead to the largest-ever foreign takeover of a Japanese company if successful.
Analysts believe that the revised bid is significantly more attractive and could incentivise Seven & i to consider engaging with ACT on progressing negotiations.
Seven & i remains focused on its plans to grow corporate value independently, aiming to present new strategies at its upcoming earnings release.
The firm recently dismissed the original bid, claiming it undervalued the company’s potential.
Investor pressure mounts as Seven & i faces decision on Couche-Tard’s revised offer
Investors and analysts have expressed growing anticipation over whether Seven & i will accept ACT’s revised offer.
The latest bid values Seven & i at $18.19 per share, significantly higher than the original $14.86 per share offer.
This comes amid calls from key shareholders, including Artisan Partners, to streamline its business operations and focus on its core convenience store division, which includes over 80,000 7-Eleven stores worldwide.
Seven & i’s other operations, such as its banking and supermarket divisions, are also under consideration for sale, as investors look for greater value realisation.
As per several report, the company may also announce the sale of part of its banking stake during its upcoming earnings report.
Seven & i share price surges on Couche-Tard’s increased bid
Shares of Seven & i surged nearly 12% on the news of ACT’s revised $47 billion offer.
The stock pared gains to close at a 4.7% increase, reflecting investor uncertainty about whether the deal will proceed.
Analysts are now focused on Seven & i’s upcoming second-quarter earnings report, which could offer further clarity on the company’s next steps.
The Nikkei has reported that the group’s operating profit has fallen by 20% year-on-year, driven by inflation and declining consumer spending in its US business. Investors are eager to see how the company plans to offset these challenges and increase shareholder value in the coming quarters.
Seven & i to reveal strategic changes at earnings report amid bid speculation
In addition to evaluating ACT’s revised bid, Seven & i is preparing to announce new strategic plans at its second-quarter earnings release. The firm is expected to address its non-core operations, potentially selling stakes in its banking arm, Seven Bank, and its supermarket unit.
This follows increasing pressure from activist investors to streamline operations and focus on its global convenience store business. Analysts suggest that these moves could lead to a rebranding of the company, with reports indicating that a name change may be on the horizon to reflect this shift in business focus.
Regulatory concerns linger as Seven & i evaluates Couche-Tard offer
While ACT’s revised offer is seen as compelling by market analysts, regulatory challenges could complicate the deal. Last month, Seven & i was classified as “core” to Japan’s national security, a designation that raises the regulatory hurdles for any potential buyout.
Japanese finance officials have downplayed the significance of this label, suggesting that it does not fundamentally change the level of scrutiny applied to the review process.
As the board of Seven & i deliberates its next steps, investors are closely watching to see how the company balances its obligations to shareholders with regulatory compliance.
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