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7 & i Holdings, after months of stonewalling, begins talks with Canada’s Alimentation Couche-Tard over a $47 billion takeover bid for 7-Eleven store owners after receiving a takeover offer from a rival company from its founding family. did.
Confirmation of long-awaited talks and a new development in the form of a potential “white knight” bidder add to the excitement surrounding the deal, which, if successful, would change Japan’s mergers and acquisitions market. I raised it.
The Canadian company’s interest in acquiring the world’s largest convenience store operator dates back more than 20 years. The formal approach for Seven & i was announced in August and, if successful, would be the largest takeover deal in Japanese history.
Three people briefed on the matter said “preliminary and limited” discussions have begun between advisers from both companies.
However, even though these talks have tentatively begun, Seven & i announced on Wednesday that it had received a proposal from a rival for a possible acquisition led by members of the company’s founding Ito family. A notice to the Tokyo Stock Exchange described the proposal as “confidential and non-binding.”
The proposal from Ito Kogyo, a company representing the company’s founder’s son and vice president Junro Ito and other family members, marks Seven & i’s first appearance as a potential white knight bidder. strongly opposed Canada’s approach.
No price was disclosed in the statement to the stock exchange, but people close to the situation said Ito’s proposal would require equity investment from domestic companies as well as unprecedented levels of borrowing from major Japanese banks. becomes. According to Seven & i’s website, Ito Kogyo currently holds 8.2% of Seven & i’s shares.
Itochu Corp., one of Japan’s largest trading companies and already the owner of the FamilyMart convenience store chain, is participating in talks about a new acquisition proposal, according to people familiar with the matter. A spokesperson for Itochu declined to comment, but people close to the company added that nothing has been decided.
Counsel and acquisition experts say Itochu’s involvement could be difficult, and if Itochu were to ultimately become the owner of Seven & i, it would have at least 65% of Japan’s convenience store market by sales. He said that he would control the Mitsui & Co., a trading company that does not own a convenience store chain, is also said to be a possible takeover offer. A company spokesperson declined to comment on whether it was involved in negotiations with the Ito family.
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The family’s new proposal is currently being considered by Seven & i’s special committee. The committee is also continuing to investigate the Couche-Tard bid, which was raised to $47 billion in September after an initial unsolicited $39 billion bid was rejected as a “significant” undervalue. . Japanese company.
“We continue to evaluate all of the issues at hand, taking into account Mr. Ito and ACT’s Ito Kogyo proposal, as well as the company’s unique opportunity to unlock shareholder value,” said Stephen Dacus, chairman of the special committee. We are committed to objectively considering our options.” The board said in a statement Wednesday.
The Ito family’s offer comes close to the Japanese company, where the founding family strongly opposes the idea of the country’s largest retailer falling into foreign hands and has been increasingly aggressive in finding Japanese bidders. This was in response to recent comments from four related parties.
Couche-Tard did not immediately respond to a request for comment. The Ito family could not be reached for comment. Seven & i declined to comment on the discussions.
This story has been corrected to clarify the size of the Ito family’s stake.
