Couche-Tard Withdraws $46 Billion Bid for Seven & i, Citing Lack of Engagement

Alimentation Couche-Tard Inc., the Canadian convenience store operator, has withdrawn its $46 billion acquisition proposal for Japan's Seven & i Holdings Co., Ltd., the parent company of 7-Eleven, citing a lack of constructive engagement from the Japanese firm.

The proposed offer of ¥2,600 per share represented a 47.6% premium over Seven & i's unaffected stock price. Despite initial discussions beginning in July 2024 and a non-disclosure agreement signed in April 2025, Couche-Tard expressed frustration over unproductive negotiations and limited access to due diligence information.

In a letter to Seven & i's Board of Directors, Couche-Tard stated:

"Since entering into the NDA, there has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal... We believe this approach reinforces our concerns about your approach to governance."

Seven & i responded to Couche-Tard's withdrawal, expressing disappointment and disagreement with the characterization of events:

"While we are disappointed by ACT's decision, and disagree with their numerous mischaracterizations, we are not surprised."

Following the announcement, Seven & i's shares experienced a significant decline, falling more than 7% after trading resumed post-announcement.

This development underscores the ongoing challenges faced by foreign companies attempting acquisitions in Japan, despite recent corporate governance reforms aimed at increasing openness to such deals. The collapse of this high-profile transaction highlights the complexities and resistance that can still be encountered in the Japanese market.

The withdrawal of Couche-Tard's acquisition proposal for Seven & i highlights the persistent challenges in executing cross-border mergers and acquisitions in Japan. Despite offering a substantial premium and engaging in prolonged negotiations, the lack of constructive engagement led to the deal's collapse, reflecting broader issues within Japan's corporate environment regarding foreign takeovers.