Alimentation Couche-Tard withdraws bid to buy 7-Eleven operator Seven & i
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The news: Canadian convenience store owner Alimentation Couche-Tard has withdrawn its proposal to acquire Japanese retail giant Seven & i due to a "lack of constructive engagement" with the 7-Eleven operator.
The numbers: Earlier this year, Toronto-listed Couche-Tard submitted a proposal of ¥2,600 ($27) per share for Seven & i, representing a 47.5% premium to its share price at the time.
The context: In a letter to Seven & i's board of directors, Couche-Tard founder Alain Bouchard and chief executive Alex Miller said there had been "no sincere or constructive engagement" by Seven & i's representatives to advance the proposal.
They said they believe a combination of the two companies would "create a global leader in convenience with the ability to better serve our stakeholders, grow the 7-Eleven brand and generate value for our respective shareholders".
However, they said that Seven & i's founding Ito family had "not been open to any conversation" and the company had not engaged with Couche-Tard despite confirming it was "seriously" considering the proposal during an earnings call on 11 July.
Couche-Tard's leadership accused Seven & i of engaging in a "calculated campaign of obfuscation and delay", including holding "tightly scripted" meetings and not addressing "basic questions about industry dynamics" in Japan.
What they said: "We are proud of the progress we are making across our business and the impact we are having in the communities in which we operate," Bourchard and Miller wrote.
"We believe this combination has the ability to enhance that path. However, we are not able to effectively pursue this combination without deeper and genuine further engagement from Seven & i leadership and the special committee.
"Accordingly, we are withdrawing our proposal at this time."
The source: Alimentation Couche-Tard media release
