The Japanese owner of convenience store chain 7-Eleven has rejected a $38 billion (£29.2 billion) takeover offer from its Canadian rival.
Seven & i Holdings said in a letter to Circle K owner Alimentation Couche-Tard (ACT) that the Canadian company’s offer “significantly” undervalues the company and carries regulatory risks.
But 7-Eleven CEO added that he remains open to negotiations and is prepared to consider a better offer.
ACT did not immediately respond to BBC News’ request for comment.
“The Special Committee believes that your proposal is untimely and significantly underestimates the Company’s sole path forward and the additional viable options we see to realize and unlock shareholder value,” Seven & i’s letter said, referring to a special committee it had formed to consider the proposal.
ACT’s proposal comes at a time when the Japanese yen is significantly weaker against the US dollar, making Seven & i more affordable for foreign buyers.
Seven & i’s letter added, “Your proposal fails to adequately acknowledge the significant challenges that such a transaction would present to U.S. competition enforcement authorities.”
7-Eleven is the world’s largest convenience store chain, with 85,000 stores in 20 countries around the world.
If the deal goes through, ACT’s U.S. and Canadian footprint would more than double to about 20,000.
