Circle K's parent company, Canada's Alimentation Couche-Tard (ACT), has withdrawn its 6.8 trillion yen (approximately HK$360 billion) takeover offer for Seven & i Holdings, the Japanese operator of 7-Eleven, citing a lack of cooperation from the target company. The failed acquisition sent Seven & i's shares plunging 9.45% on July 17.
In a scathing statement, ACT accused Seven & i's board of employing deliberate delay tactics and showing "no genuine or constructive engagement" throughout the 11-month negotiation process. The Canadian firm had initially proposed the acquisition in August 2023 before raising its offer by 22% to nearly 7 trillion yen in October. Despite signing a confidentiality agreement and discussing potential antitrust issues under U.S. law in May 2024, talks ultimately collapsed.
Seven & i countered that ACT's withdrawal was unilateral and criticized the Canadian company's public statements as misleading. Analysts note the deal faced steep obstacles from the outset, as 7-Eleven's status as a Japanese corporate icon triggered national security concerns. Japan's Economic Revitalization Minister Ryosei Akazawa had previously emphasized the "critical relationship" between Seven & i and national interests in January 2024.
The breakdown leaves Seven & i, which operates 85,000 convenience stores globally, including 21,000 in Japan, grappling with sluggish sales while fending off foreign acquisition attempts.
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