Key Points
- Couche-Tard (the owner of Circle K) has withdrawn its $46 billion offer to acquire Seven & i Holdings (the owner of 7-Eleven).
- Couche-Tard blamed the deal’s failure on Seven & i, accusing it of refusing to negotiate in good faith and using “delay tactics.”
- The deal would have been the largest foreign buyout in Japan’s history; its collapse is the largest to ever fail in the Asia-Pacific region.
- The company’s management now faces significant pressure from shareholders to demonstrate its ability to grow and create value independently.
Canada’s Alimentation Couche-Tard has officially withdrawn its massive $46 billion bid to buy Seven & i Holdings, the Japanese company behind the 7-Eleven convenience store chain. Couche-Tard, which operates Circle K, said it was forced to walk away after a year of trying because Seven & i refused to negotiate constructively.
The collapse of the deal, which would have created a global convenience store giant, is the largest ever proposed corporate buyout to fall apart in the Asia Pacific region. Seven & i’s shares dropped 9% on the news.
In a sharp letter to Seven & i’s board, Couche-Tard accused the company of engaging in a “calculated campaign of obfuscation and delay.” It claimed that despite signing a non-disclosure agreement, it was given very little meaningful financial information. Seven & i responded by saying they were “disappointed” but “not surprised” by the decision and disagreed with Couche-Tard’s claims.
The failed deal is viewed as a significant test case for Japan’s openness to foreign takeovers. Shareholders, including activist investors who had pushed for the buyout, expressed their disappointment with Seven & i’s management.
Couche-Tard said it had tried to be flexible, even proposing alternative deals, such as buying only Seven & i’s international business. However, it said the Japanese company’s leadership was unwilling to engage. Now, Seven & i’s management faces intense pressure from investors to prove it can create value independently.
