LAVAL, Que. – Alimentation Couche-Tard Inc. says it is “disappointed” in a refusal of its takeover offer by the Japanese owner of 7-Eleven and remains focused on reaching a deal.
In a press release Sunday, the Quebec-based convenience store operator argued its proposal offers clear strategic and financial benefits and it believes the two companies can reach a mutually agreeable transaction.
On Friday, Seven & i said in a letter to Couche-Tard that the Quebec company’s takeover offer “grossly undervalues” the Japanese company, and said the proposal was not in the best interest of its shareholders and other stakeholders.
Seven & i had called the offer of US$14.86 per share in cash opportunistically timed and raised concerns about regulatory approval for the deal.
In its Sunday statement, Couche-Tard said it’s “highly confident” further discussions would lead to the ability to find increased value for Seven & i shareholders.
“Given the mutual benefits of a combination, we are disappointed in (Seven & i’s) refusal to engage in friendly discussions,” the company said.
The Quebec company added it has offered to enter a non-disclosure agreement to enable both sides to share further information, which was rejected.
Seven & i had previously told Couche-Tard that it’s open to engaging in discussion if the Quebec company addresses its concerns on the regulatory environment.
Couche-Tard said in its release that it would jointly work together with Seven & i to secure regulatory approvals.
“Couche-Tard has a successful history and track record of acquisitions and working with U.S. and other regulators,” the Quebec company said, adding it believes it would address regulatory considerations in Japan as well.
Couche-Tard said it remains focused on reaching a deal with Seven & i that is in the best interests of all parties.
This report by The Canadian Press was first published Sept. 8, 2024.
Companies in this story: (TSX:ATD)
