#Canada #7-Eleven #Seven & i #Couche-Tard #Laval

Alimentation Couche-Tard's Proposal Update on Seven & i

On March 10, 2025, Alimentation Couche-Tard Inc., a leader in the convenience and mobility industry, issued an update regarding its ongoing proposal to acquire Seven & i Holdings, Ltd. Experiences over the past months have emphasized the strategic alignment between Couche-Tard and Seven & i, particularly in terms of growing the iconic 7-Eleven brand globally and collectively driving business success across diverse markets.

Strategic Fit and Mutual Value Creation

Couche-Tard acknowledges the pivotal role Seven & i plays in the global retail landscape, particularly in Japan, where their 7-Eleven stores offer unparalleled service and quality. The corporation believes strongly in a synergistic relationship where both entities could achieve greater success collectively rather than independently. By acquiring Seven & i, Couche-Tard aims to empower the brand further and broaden its global footprint, thus driving enhanced value for shareholders and stakeholders alike.

In their effort to kickstart a productive dialogue, Couche-Tard has spent the last six months closely attempting to engage in constructive discussions with Seven & i; however, the engagement has proven to be limited with a predominant focus on regulatory matters in the U.S.

Comprehensive Proposal Details

On January 24, 2025, Couche-Tard revised its non-binding proposal, reaffirming its commitment to a fruitful partnership. With an emphasis on financial transparency, the company believes that access to comprehensive due diligence could further solidify the merger’s prospects. The proposal includes a yen-denominated transaction, showing an intention to align closely with Seven & i's existing operational framework.

Couche-Tard's proposal transcends merely a financial attachment. It stands to offer considerable economic value compared to the revised plans posited by Seven & i, which are riddled with uncertainties around performance recoveries and potential IPOs in the U.S. market.

Financing and Commitment to U.S. Regulations

Addressing financing, Couche-Tard is prepared to fund the acquisition using a balanced approach of equity and debt financing while maintaining robust credit ratings. They have received letters of support from Goldman Sachs, Royal Bank of Canada, and Scotiabank, endorsing their confidence in the financial backing required for the proposal.

The U.S. convenience store market presents a unique landscape with a vast number of operators, showcasing both companies' complementary market positions. By providing a clear divestiture roadmap and aggressive measures to ensure regulatory compliance, Couche-Tard aims to dispel concerns from Seven & i regarding the regulatory approval pathway.

Commitment to Japanese Operations and Employee Relations

Should the proposed transaction come to fruition, Couche-Tard intends to maintain and enhance the integrity of Seven & i's operations in Japan. With deep respect for the local business culture, the corporation is committed to ensuring that operations remain uninterrupted, enhancing employee engagement, and retaining a dedicated focus on franchise relationships. They have made it clear that growth is the priority, with no plans for store closures or workforce reductions.

Couche-Tard seeks to partner with local leadership, franchisees, and employees to navigate through the cultural nuances of the Japanese market effectively. The goal is to share best practices globally while investing in local success. Furthermore, they regard the Ito family's legacy with deep respect, looking to learn from their extensive experience in the sector.

Commitment to Corporate Responsibility and Community Engagement

Understanding the critical role that convenience stores play in community infrastructure – especially during emergencies – Couche-Tard is committed to continuing operations that contribute positively to society in Japan. Their previous responses during crises emphasize their readiness to act in community service and resilience, which they intend to maintain post-acquisition.

As these discussions progress, Couche-Tard remains optimistic about settling on definitive terms that benefit all stakeholders. Their persistent advocacy for an amicable transaction underscores their belief in the proposal's value and necessity for strategic growth.

Conclusion

With a firm commitment to enhancing the convenience lifestyle both at home and abroad, Couche-Tard's ambition to unite with Seven & i is rooted in creating a stronger entity capable of adapting and thriving amidst the evolving retail landscape. They look forward to progressing negotiations with Seven & i towards a mutually beneficial resolution that honors the operational excellence embedded within both organizations.