#Japan #Shareholders #Tokyo #Alimentation Couche-Tard #Seven & i Holdings

Seven & i Holdings Responds to Couche-Tard's Withdrawal from Acquisition Talks

On July 17, 2025, Seven & i Holdings Co., Ltd. (commonly referred to as 7&i) issued an official statement concerning the recent decision by Alimentation Couche-Tard Inc. (ACT) to unilaterally terminate discussions regarding a potential acquisition. This development has generated a considerable amount of attention in the corporate sector, particularly given the significance of both entities in the retail industry.

In the announcement, 7&i expressed disappointment over ACT's decision, asserting that their withdrawal was unexpected yet not entirely surprising in light of recent economic fluctuations. The company pointed out that since ACT's initial proposal, the global economic landscape has shifted dramatically—impacting exchange rates and financing conditions that could influence potential acquisitions. Notably, ACT's earnings call had previously indicated a downturn in crucial markets, further complicating any negotiations.

The Special Committee at 7&i, which was tasked with evaluating the proposal from ACT, emphasized their positive approach, stating they had engaged with ACT in good faith. The committee sought to explore the feasibility of a deal that could mutually benefit both parties, especially in favor of 7&i's shareholders. However, the company was transparent about the various antitrust challenges that would complicate any potential transactions, acknowledging the lengthy regulatory scrutiny process that would be required.

7&i has made it clear that despite this setback, their strategic plan to create shareholder value remains unchanged. The company continues to pursue its roadmap for enhancing operational performance and unlocking value across its main business segments. Among their key initiatives is the upcoming divestiture of their Superstore Business and the Initial Public Offering (IPO) of their North American convenience store segment. These actions are anticipated to return roughly JPY 2 trillion to shareholders through stock buybacks by the end of the fiscal year 2030.

In addition to the divestiture and IPO plans, 7&i's management is focused on making swift improvements across several areas of their operations. The firm aims to boost performance metrics in both the medium and long term, emphasizing their commitment to optimizing their existing business models.

As an industry leader, 7&i Holdings remains dedicated to navigating through this period of uncertainty while reaffirming its stance on maximizing shareholder value. With tangible and actionable plans in place, 7&i is poised to adapt to the ever-evolving retail landscape and emerge stronger in the forthcoming years.

In conclusion, while the withdrawal of ACT from acquisition talks is a notable chapter in 7&i's narrative, the company is resolute in its commitment to pursuing opportunities for growth and value enhancement. Stakeholders can be assured of 7&i's focus on strategic initiatives that will solidify its position as a leader in the convenience store sector and beyond.