A 7-Eleven convenience store in Tokyo, Japan - Photo: REUTERS
On October 9, 7-Eleven's parent company Seven & i Holdings confirmed that Alimentation Couche-Tard, the parent company of Circle K, has raised its acquisition offer.
The Canadian company has offered $47 billion, according to UPI. If successful, it would be the largest acquisition ever by a Japanese company abroad.
Previously, Bloomberg News first reported on Couche-Tard's proposed takeover bid of $38.5 billion, which was rejected as "too low."
In a statement about the incident, Seven & i said it would keep the negotiations confidential at Couche-Tard's request.
"The increased offer from ACT (Alimentation Couche-Tard) is much more attractive than the initial proposal. While there are still legal hurdles, the Seven & i board should consider whether the deal can go ahead," said Manoj Jain, co-founder of Hong Kong-based Maso Capital.
Shares of Seven & i rose nearly 12% after the news broke, suggesting some investors believe a deal is possible.
Last month, Seven & i said it would strengthen its value. The Nikkei reported that the company’s second-quarter profit fell 20% from a year earlier due to the impact of inflation on U.S. consumers.
Currently, overseas convenience store business accounts for more than 70% of Seven & i's revenue.
Japan recently designated its retail giant as "core" to national security, meaning the legal hurdles to taking over the company will be higher.
Seven & i announces restructuring plan
Seven & i Holdings announced on October 10 a roadmap to separate underperforming businesses and focus on its convenience store operations. It also plans to change its name to "7-Eleven Corp" to emphasize its focus on profitable convenience stores.
In addition, they also established a new company called York Holdings, which will include 31 subsidiaries.
Source: https://tuoitre.vn/circle-k-de-xuat-mua-chuoi-7-eleven-voi-gia-toi-47-ti-usd-20241010230233467.htm
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