Canada’s Alimentation Couche-Tard (ATD) has increased its takeover offer for the 7-Eleven convenience store chain by 22% to $47 billion U.S.
If it succeeds, the deal for Seven & i Holdings, the company that owns the 7-Eleven chain, would be the largest foreign acquisition of a Japanese firm ever.
According to media reports, Couche-Tard, which is based in Quebec and runs the Circle-K convenience store chain, has now offered $18.19 U.S. per share for Seven & i Holdings.
The new offer is up from a previous bid of $14.86 U.S. per share that was rejected by the 7-Eleven owner as being insufficient.
Seven & i said in a statement that it plans to keep negotiations confidential as requested by Couche-Tard.
Shares of Seven & i jumped 12% on news of the revised offer from Couche-Tard.
Seven & i owns more than 80,000 7-Eleven stores worldwide. Its other operations include supermarkets, a bank, the Denny’s restaurant chain, and Tower Records music stores.
The Japanese conglomerate has faced pressure from activist investors this year as it struggles financially and its share price slumps.
While some analysts say a sale of the 7-Eleven convenience store chain would benefit Seven & I, others are skeptical that a deal with Couche-Tard will be approved by regulators given the concentration in convenience stores that would result from the acquisition.
Alimentation Couche-Tard’s stock has declined 5% this year and currently trades at $74.40 per share.
