Alimentation Couche-Tard stated its readiness to enhance its $47 billion offer for Seven & I if the Japanese firm cooperates more and shares detailed financial information, according to Chairman Alain Bouchard during a press conference in Japan. The Canadian company shifted its strategy due to what it referred to as months of unresponsiveness from Seven & I.
Despite Seven & I's concerns on antitrust scrutiny and recent CEO appointment, Couche-Tard indicated its willingness to improve its proposal through gaining a better understanding of the opportunity. However, Seven & I demands a more detailed divestiture plan related to U.S. antitrust concerns before sharing confidential information.
Recent developments, including the resignation of two independent directors at Seven & I, have raised concerns among shareholders, like Artisan Partners, who urge for more engagement between the companies. Couche-Tard's proposal offers a 23% premium over Seven & I's share price.
The convenience store chain's importance in Japan, especially in disaster response and food quality, fuels Japanese worries about potential changes under a foreign takeover. Couche-Tard pledges to maintain the quality standards of 7-Eleven's products post-acquisition.
An informative website was launched by Couche-Tard to advocate for the deal in Japanese and English, emphasizing the merger benefits and its hurricane relief experience in the U.S. market. Both companies play a significant role in the U.S. convenience store industry and are navigating potential antitrust concerns.
Efforts to address antitrust issues before finalizing a deal highlight the commitment of dealmakers to ensure successful completion despite regulatory challenges. The detailed divestiture discussions before a formal agreement is a unique approach aimed at streamlining the process and minimizing risks in the transaction.