TOKYO

Seven & i Holdings Co said Monday it is open to discussions with Canadian convenience store giant Alimentation Couche-Tard Inc. regarding a buyout offer, provided any new proposal fairly values the Japanese company and avoids regulatory concerns.

“We remain open to engaging in sincere discussions should ACT put forth a proposal that fully recognizes Seven & i’s standalone intrinsic value,” the company said in a press release after it slammed the takeover bid as “grossly” undervaluing the major Japanese retailer in a letter dated Friday.

Couche-Tard said Sunday that it was “disappointed” in Seven & i’s refusal to engage in discussions over the $38.7 billion acquisition offer but noted that it was “ready and willing” to “advance friendly discussions.”

“We stand by prepared to enter into collaborative and friendly discussions with 7&i to focus on finding greater value for 7&i and its shareholders,” it said. “We are highly confident that we have sufficient capacity to finance the transaction in cash and that financing would not be a condition to closing a transaction.”

On regulatory concerns aired by the operator of Seven-Eleven convenience stores, Couche-Tard said Sunday that it would “jointly consider divestitures that may be required to secure regulatory approvals.”

Both Couche-Tard’s and Seven & i stores operate in the United States, raising the risk of violating U.S. antitrust law.

Seven & i said in August that it had received a nonbinding, preliminary buyout proposal from Couche-Tard and set up a special committee of independent outside directors to review the offer.

The Canadian company, which runs brands including Couche-Tard and Circle K, has about 17,000 stores in over 30 countries and regions, including Canada and the United States.

Seven & i operates more than 80,000 Seven-Eleven convenience stores around the world.

reference – https://japantoday.com/category/business/seven-i-remains-open-to-couche-tard-buyout-talks-if-offer-is-fair