The founder of 7-Eleven's Japanese parent company couldn't secure money to buy it, the company said Thursday several months after it launched a bid of over $50 billion to dodge foreign acquisitions.
Seven & I Holdings, which is on top of a vast network of 85,000 convenience stores, primarily in Asia and the US, said in a statement it would evaluate alternatives, including a proposal from Canadian alimentation couche-tard, that its founding family rejected.
Seven & I and its founder's son Junro Ito, and the family's asset management company Ito-Kogyo, launched an acquisition attempt in November after Couche-Tard began unsolicited acquisition attempts.
Couche-Tard, which operates more than 16,000 Couche-Tard and Circle K stores in North America and Europe, made an initial offer worth $38 billion in August. Couche-Tard returned the following month with an offer worth $47 billion.
If Couch-Tard succeeds, the deal will become the largest foreign-led acquisition of a Japanese company.
Seven-person stock fell 11% on Thursday.
The fight for control of 7-Eleven reflects the ongoing drastic changes in Japan of companies that have seen convenience store chains as treasures across the country and are making foreign-led acquisitions long shots.
Japan has long been seen as inexplicable for foreign companies seeking mergers or acquisitions. Analysts have questioned whether Couche-Tard can do better at 7-Ileven than Seven & i.
For over a decade, Japanese officials have taken steps to show Japanese companies that they are open to moves that will benefit shareholders financially, including properly considering acquisition offers. The aim was to leave behind an era of fortress-like corporations where foreign purchase proceeds could be rejected without deliberation.
Seven & I said the proposed acquisition of Couche-Tard will trigger a competitive investigation in the US, the two biggest operators of convenience stores.
In a statement Thursday, Japanese companies said they are working with Couche-Tard to determine whether proposals that address this regulatory issue are possible.
