7-Eleven Fighting Biggest Potential Foreign Takeover of a Japanese Company

The Japanese-owned 7-Eleven chain has received a takeover bid from a Canadian company; and if it goes through, the deal will be the biggest foreign takeover of a Japanese company

The Tokyo-headquartered retail conglomerate Seven & i Holdings has announced that it has received a takeover bid from Canada's Alimentation Couche-Tard, which owns rival shop chain Circle K. 

In a statement, the 7-Eleven owner confirmed receipt of the bid and shared that it has “formed a Special Committee of the Board of Directors, comprised solely of independent outside directors, led by Stephen Hayes Dacus, as Chairperson of the Board of Directors, to review the proposal.” However, it states: “Neither the Board of Directors nor the Special Committee has made any determination at this time to either accept or reject the proposal from ACT, to enter into discussions with ACT or to pursue any alternative transaction.”

However, the Financial Times is reporting that the Japanese company is looking at how it can thwart the bid, including seeking protected status from the Japanese Government. This would see the company put into the “core” category by the Government, which is largely dominated by nuclear and semi-conductor companies. 

The newspaper adds that “…7-Eleven has repeatedly been a target for shareholder activism and has delivered relatively poor value to investors for eight years”. The change of company status is suggested to be just one option that the company is considering. 

A decision is expected by the special committee by mid-September.