BBC News’ Post

7-Eleven's rejection of their buyout: a business analysis by Coleen Danielle C. Natividad 7-Eleven is known to be the biggest convenience store chain in the world. I was not surprised that 7-Eleven did not consider the buyout offer from its competitor, who only valued its company at 20% above their current share price. This is a wise decision. 7-Eleven did not let its competitor buy them lower. Also, with the economy recovering and convenience stores still relevant to consumers for its accessibility and product offerings, 7-Eleven still has the chance to thrive in the future. Link to the article below.

https://lnkd.in/ee6qnMxn This would be a huge acquisition if it goes through for Couche-Tard, making them the largest convenience store company in the world, based on number of locations. Seems like the consolidation trend is happening as much in retail as in F&B. #RETAIL #F&B #MERGERSANDAQUISITIONS #COUCETARD #711 #CONSOLIDATION

7-Eleven Owner Rejects $38 Billion Buyout Offer from Canadian Rival Alimentation Couche-Tard The Japanese conglomerate Seven & i Holdings, owner of the world’s largest convenience store chain 7-Eleven, has turned down a $38 billion takeover bid from Canadian rival Alimentation Couche-Tard (ACT).… #7Eleven #ACT #Canadian >>> Read more

Shares in the owner of convenience store giant 7-Eleven jumped on Wednesday after it received a new takeover offer from Canadian rival Alimentation Couche-Tard. Japan's Seven & i Holdings confirmed the new approach but did not reveal any new details. The announcement came after Bloomberg News reported that the new offer valued the firm at more than $47bn (£36bn) - around 20% higher than previously. In September, Seven & i rejected a $38bn approach from Couche-Tard, saying it grossly undervalued the firm and that any potential takeover would face major regulatory hurdles. Seven & i shares ended the day 4.7% higher in Tokyo after initially jumping by 9.5%. The new offer was reportedly submitted to Seven & i on 19 September and no discussions between the two sides have taken place since. Seven & i said it "will continue to act in the best interest of its shareholders and other stakeholders." After the previous offer was rejected, Seven & i was added by Japan's Finance Ministry to a list of businesses that are considered to be "core" to the country's national security.

“Valued at the equivalent of $31 billion before news of the offer emerged, Seven & i shares jumped 23% on Monday. The company said the bid was preliminary and non-binding, without disclosing terms. A special committee of independent outside directors will make a “prompt, careful and comprehensive review of the proposal,” Seven & i said in a statement Monday. Couche-Tard confirmed it made a “friendly, non-binding proposal” but gave no details, and said it’s not certain an agreement will be reached.  Although Couche-Tard is smaller than Seven & i, with about 16,700 stores compared with more than 85,000 for the Japanese retailer, the Canadian company enjoys a bigger valuation of about $58.5 billion. Foreign takeovers of Japanese companies are extremely rare, but recent changes in guidelines for merger and acquisition proposals, and activist investors pushing companies to boost value — including at Seven & i — could boost the odds of a deal that would create a global convenience-store behemoth. (…) Seven & i has come under pressure from activist fund ValueAct Capital Management LP over perceptions that its assets could be worth more and to narrow its focus to 7-Eleven stores, saying last year that as a standalone listed company the convenience-store business could be worth as much as ¥8,500 per share. The comments, made before a Seven & i conducted a 3-for-1 stock split in February, indicate that operation alone would be worth 31% more than the entire company’s market capitalization at Monday’s closing price of ¥2,161. In reaction, it’s taken restructuring measures and initiated a buyback after fending off efforts to oust Chief Executive Officer Ryuichi Isaka. Although headquartered in Tokyo, Seven & i gets the majority of its revenue from overseas. Last fiscal year, 74% of sales came from North America compared with 25% from Japan. Couche-Tard, Canada’s most valuable retailer, operates convenience stores around the world under its own brand, as well as Circle K and Ingo. It has a history of expansion overseas, and bought almost 2,200 gasoline stations in Europe from TotalEnergies SE for €3.1 billion last year. It previously made a $20 billion bid to buy Carrefour SA, which was blocked by the French government.  Any merger of the companies, the two biggest convenience-store operators in North America, could invite scrutiny from competition regulators. Seven & i operates more than 13,000 stores in the US and Canada, including Speedway outlets that it acquired in recent years, while Couche-Tard has almost 9,000.  (…) Isaka has spent more than $25 billion expanding Seven & i’s global foot print, especially in the US, where he added the Speedway and Sunoco gasoline-station networks. In an interview with Bloomberg News earlier this year, he said Seven & i would be interested in making its own acquisitions.”

Quick Turnaround: Seven & i Holdings Rejects Couche-Tard’s Bid 🔍 A few weeks ago, I posted about Couche-Tard’s ambitious bid to acquire 7-Eleven. 🚀 The situation has evolved swiftly— Seven & i Holdings, the Japanese parent company of 7-Eleven, has just turned down the bid. 🚫 As anticipated, the Japanese conglomerate proved to be a formidable barrier, reinforcing its historically cautious stance on foreign acquisitions. 🇯🇵 This quick decision underscores the entrenched resistance to foreign takeovers within the Japanese market, especially when it involves a beloved brand like 7-Eleven. Reflecting on my earlier post, I predicted that Seven & i Holdings would likely reject the bid before it even reached the FTC review stage. 📊 My forecast appears to have played out accurately, highlighting the strong internal and cultural factors influencing such decisions. The immediate rejection also emphasizes the challenges Couche-Tard faces when attempting to integrate into markets with deeply rooted domestic preferences. Here is a link to my previous post on the subject: https://lnkd.in/ekGNgsUR Despite this setback, the broader conversation about the future of the convenience retail industry remains pertinent. 🌐 How will Couche-Tard and other industry players adapt to this outcome? Will we see new strategies or shifts in focus? The retail landscape continues to evolve, and while this particular bid didn't succeed, the drive for consolidation and innovation in the sector is likely to persist. Stay tuned for more insights and developments as we navigate these dynamic industry trends together. 📈🔍

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