Couche-Tard Ends Pursuit of 7-Eleven Parent
Alimentation Couche-Tard (ACT) has withdrawn its $47 billion takeover bid for 7-Eleven parent company Seven & i Holdings, citing a "lack of constructive engagement" from Seven & i.
In response, Seven & i officials said a special committee of its board of directors acted in "good faith and constructively" with Couche-Tard to explore a deal that would benefit shareholders.
In a letter to Seven & i's board, Couche-Tard officials said, "We have repeatedly sought a friendly dialogue, but (the company) has not been open to any conversation. We also stated that there may be an opportunity to enhance the economic terms of our proposal if we are afforded access to additional diligence information."
The letter, signed by Couche-Tard executives Alain Bouchard, founder and executive chairman of the board, and Alex Miller, president and CEO, outlined the steps the convenience store chain had taken to engage with Seven & i officials over the past years.
Additionally, Couche-Tard officials said that since entering into a nondisclosure agreement in April of this year, there was no constructive engagement from Seven & i that would facilitate the advancement of any proposal.
Officials with Seven & i said that while disappointed with the decision to end talks, the company disagrees with Couche-Tard's "numerous mischaracterizations."
"Since ACT initially made its proposal, there have been significant changes in the global economy, exchange rates, and financing markets," the company said in a news release. "As ACT noted on its most recent earnings call, conditions in key markets have deteriorated since last year. At the same time, we were always honest about the extraordinary antitrust hurdles a potential transaction would face, including the protracted timeframe to move through the regulatory process."
Couche-Tard's bid to acquire Seven & i dates back to August 2024, when the Laval, Quebec-based company submitted a "friendly, non-binding proposal."
Couche-Tard currently operates 17,000 stores in 29 countries and territories. With its Couche-Tard and Circle K banners, the company is one of the largest convenience store operators in the U.S.
Seven & i subsidiary 7-Eleven Inc. operates, franchises, and/or licenses more than 13,000 stores in the United States and Canada. In addition to 7-Eleven stores, it operates and franchises Speedway, Stripes, Laredo Taco Co., and Raise the Roost Chicken and Biscuits locations.
