Japanese retail conglomerate Seven & i Holdings has rejected a substantial $38.5bn cash bid from Canadian retailer Alimentation Couche-Tard (ACT).  

Responding to the proposal, special committee chair and Seven & i Holdings board chairman Stephen Dacus said that the proposal does not align with shareholder interests and anticipated significant antitrust hurdles in the US market. 

Seven & i, the parent company of convenience chain 7-Eleven, said that the offer stood at $14.86 per share but expressed willingness to consider proposals that recognise its "intrinsic value" and provide certainty of closure amidst the current regulatory climate. 

In a letter, Stephen Dacus said: “After a thorough review and discussion of your proposal, the Seven & i board has unanimously concluded, based on the unanimous recommendation of the special committee, that the proposal is not in the best interest of Seven & i shareholders and other stakeholders. 

“We are open to engaging in sincere discussions should you put forth a proposal that fully recognises our standalone intrinsic value and addresses our concerns regarding the certainty of closing in the current regulatory environment.  

“However, we do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction. 

The rejection follows Seven & i's previous acknowledgment of an offer from Couche-Tard, the owner of Circle-K, without disclosing the bid amount.  

Reuters reported that shares of Seven & i closed 1.43% lower at 2,133.5 yen ($14.99) on 6 September 2024. 

A Japanese senior finance ministry official clarified that companies cannot use the country’s national security as a pretext to block foreign takeovers.  

The rejection comes amid rumours that Seven & i Holdings is pursuing “core” classification under the Foreign Exchange and Foreign Trade Act (FEFTA) to avoid a buyout from ACT.