TOKYO: The Japanese operator of 7-Eleven plans to ask its Canadian rival Couche-Tard to revisit its takeover proposal, calling the existing offer “low”, a media report said Thursday.
The proposed purchase of Seven & i Holdings by Alimentation Couche-Tard (ACT) would be among the biggest foreign takeovers of Japanese firms, combining 7-Eleven, Couche Tard, Circle K and other brands across Asia, North America and Europe.
Seven & i Holdings plans to send a letter to ACT as early as Friday to say that there were also concerns regarding competition law, the Nikkei business daily said without citing sources.
“It appears that the company has determined that the acquisition price offered was low and that Seven & i’s corporate value was not properly evaluated,” the business daily said.
“Discussions with ACT regarding the proposed acquisition will continue,” the Nikkei said.
Seven & i, with a market value of around 5.6 trillion yen ($39 billion), will ask for a review of the proposal, it said.
Both firms have confirmed the unsolicited bid but have given no details about its size.
The world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally. It is a beloved institution in Japan, selling everything from ready-made meals to umbrellas.
ACT operates more than 16,700 outlets in 31 countries and territories.
Seven & i has asked the Japanese government to designate parts of the company as “core”, which would make a takeover more difficult, Bloomberg News and the Financial Times have reported.
Brands with the “core” rating in Japan range from manufacturers in the nuclear, space, rare earths and chip industries to cybersecurity operators and key infrastructure service providers.
AFP