The Japanese proprietor of comfort retailer chain 7-Eleven has rejected a $38bn (£29.2bn) takeover bid from a Canadian rival.
In a letter addressed to the Circle Ok proprietor Alimentation Couche-Tard (ACT), Seven & I Holdings mentioned the Canadian firm’s provide “grossly” undervalued the corporate and was fraught with regulatory danger.
The 7-Eleven proprietor added, nonetheless, that it stays open to negotiations and able to contemplate a greater proposal.
ACT didn’t instantly reply to a BBC Information request for remark.
“The Particular Committee believes that your proposal is opportunistically timed and grossly undervalues our standalone path and the extra actionable avenues we see to comprehend and unlock shareholder worth,” Seven & I’s letter mentioned, referring to a particular committee it shaped to contemplate the provide.
ACT’s provide comes at a time of great weak spot within the Japanese yen towards the US greenback, making Seven & i extra reasonably priced to overseas consumers.
“Your proposal doesn’t adequately acknowledge the a number of and vital challenges such a transaction would face from US competitors legislation enforcement companies,” Seven & I’s letter added.
7-Eleven is the world’s greatest comfort retailer chain, with 85,000 shops throughout 20 international locations and territories.
ACT’s footprint within the US and Canada would greater than double to greater than 20,000 websites have been a deal to go forward.
