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Seven & i (OTCPK:SVNDY), the Japanese subsidiary of Seven-Eleven, has acquired Canadian company Alimentation Couche-Tard (TSX:ATD:CA) determined that the proposed amount was too low.
Alimentation Couche-Tard (ATD:CA), which operates Circle K convenience stores, Seven & i (OTCPK:SVNDY) for $14.86 per share in cash. If the deal had gone through, it would have been the largest acquisition of a foreign company by a Japanese company to date.
“After thorough consideration, Seven & i’s board of directors has unanimously concluded that the proposal is not in the best interests of shareholders,” according to a filing with the Tokyo Stock Exchange.
Seven & i (OTCPK:SVNDY) said the proposal “significantly underestimates” its solo path and “does not fully acknowledge” the challenges the deal would face from U.S. competition enforcement agencies.
“We are open to serious discussions if there is a proposal that fully recognises our unique intrinsic value and addresses our concerns regarding the current regulatory environment,” the company said. Added.
“It was clear from the start that[Kush Tar]would have to provide a lot of cash to Seven & I,” said Amir Anbarzadeh, a strategist at Asymmetric Advisors. said Nikkei“A takeover offer would need to be around $48 billion to get management to seriously consider a deal,” he said.
