The negotiations had been ongoing for about a year.
IRVING, Texas — Circle K’s parent company has dropped its multibillion-dollar bid to take over Irving-based 7-Eleven’s Japanese parent company.
Circle K’s Canadian-based parent company, Alimentation Couche-Tard confirmed Wednesday the company’s withdrawal of its proposal to take over 7-Eleven’s parent company Seven & i Holdings. Last year, Alimentation Couche-Tard had proposed a potential deal previously estimated to be valued at $38.5 billion, which was rejected by Seven & i Holdings, with Seven & i claiming the deal “grossly” undervalued the company.
Alimentation Couche-Tard, in a statement, blamed Seven & i Holdings and their lack of cooperation for the failure of their proposed deal.
“We have, for some time, tried to engage with your Special Committee on this proposal through constructive, friendly discussions in which we have clearly demonstrated that our proposal is fully financed and that there is a clear path to gaining regulatory approvals. We have repeatedly sought a friendly dialogue with the Ito family, but they have not been open to any conversation,” Alimentation Couche-Tard said in a letter to Seven & i’s board of directors posted on its website.
“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.”
Seven & i, for their part, said the company is disappointed in Alimentation Couche-Tard’s decision and with “their numerous mischaracterizations.”
“While we are disappointed by ACT’s decision and disagree with their numerous mischaracterizations, we are not surprised. Since ACT initially made its proposal, there have been significant changes in the global economy, exchange rates, and financing markets,” Seven & i said in a statement posted on its website. “The Special Committee consistently engaged in good faith and constructively with ACT to explore the possibility of reaching a deal that could be consummated and that would benefit our shareholders. 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.”
Earlier this year, a bid by Junro Ito, vice president and a representative director of 7&I (and a member of Seven & I’s founding family) and Ito-Kogyo Co. to acquire 7&I also fell through after they failed to secure the necessary financing.
7&i operates a variety of businesses, including a supermarket chain in Japan, financial services and more. 7&i and Couche-Tard are among the largest convenience store operators.
7-Eleven was founded in Dallas as the Southland Corporation before Seven & i Holdings took over the company in the mid-2000s.