Couche-Tard drops $47B bid for 7-Eleven
Canadian retailer Alimentation Couche-Tard (ACT) pulled its $47 billion bid to buy Seven & i Holdings, citing a lack of constructive engagement by the Japanese retailer.
The surprise move ends what could have been the largest foreign takeover of a Japanese company as Circle K operator Couche-Tard sought to create a global convenience store giant by acquiring the company behind 7-Eleven.
"There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives," Couche-Tard said in a letter to its board of directors.
"Rather, you have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7&i and its shareholders," the letter said.
Seven & i said in a statement that "while we are disappointed by ACT's decision, and disagree with their numerous mischaracterizations, we are not surprised."
Seven & i has been seen as a test case for corporate Japan's willingness to entertain foreign takeover bids, with the withdrawal coming after Nippon Steel was able to acquire U.S. Steel in a $14.9 billion transaction.
Couche-Tard raised its offer to $47 billion from $38.5 billion in October last year and in March offered to increase it further if the Japanese firm cooperated and revealed more financial information.
It was also working with Seven & i on a store sale plan, in a bid to ease some regulatory hurdles.
Couche-Tard's approach appeared to be gathering steam after a white-knight bid from Seven & i's founding Ito family ended after failing to get financing.
Couche-Tard said it had sought to speak to the family but found them unwilling to engage.
The two companies inked a non-disclosure agreement (NDA) but "the quantity and substance of the permitted due diligence, including at two tightly constrained management meetings, have been negligible," Couche-Tard said in the letter.
