Couche-Tard Insists on Acquisition Offer for Seven & I – Report

Investing.com -- Leading Canadian fuel and convenience store chain Couche-Tard Inc. is continuing its pursuit to acquire Japanese company Seven & i Holdings Co., the owner of the 7-Eleven chain.

According to Bloomberg News, despite a new management buyout proposal worth approximately $58 billion being presented for Seven & i, Couche-Tard's CEO, Alex Miller, expressed the company's commitment to a friendly acquisition strategy.

During a recent conference call with analysts, Miller emphasized Couche-Tard's dedication to reaching an agreement that would benefit shareholders, employees, and other key stakeholders of both organizations.

The company, which owns Circle K, had previously raised its bid to acquire Seven & i to approximately $47 billion in October. However, the Ito family, which founded Seven & i, presented a non-binding management buyout proposal valued at around ¥9 trillion ($58.7 billion).

Seven & i has yet to respond to any of these acquisition offers.

Miller also expressed confidence in Couche-Tard's financial capacity to complete the acquisition and highlighted the potential to offer global growth and enhanced services to customers through the merger.

Despite these ambitious plans, Couche-Tard faced operational challenges over the past year. Economic difficulties caused low-income consumers to reduce their spending in both the company’s stores and at fuel stations.

In the second quarter earnings report ending October 13, adjusted earnings per share were reported at 74 cents, slightly below analyst expectations.