The mega-deal between Alimentation Couche-Tard and Seven & i Holdings has fallen through. The Canadian group, owner of the Circle K brand, has withdrawn its $46 billion (€39,7 billion) offer to acquire the Japanese giant, accusing the latter of never having shown a constructive attitude. The deal, if successful, would have been the largest foreign acquisition ever in Japan.
In a letter to the Seven & i board of directors, Couche-Tard denounced "a calculated campaign of obstruction and delay, to the detriment of shareholders." Seven & i shares fell 9% in Tokyo, closing at 2.007,5 yen, well below the 2.600 yen per share offered by the Canadians.
Seven & i responded by saying it was "disappointed, but not surprised," denying the accusations. Some analysts believe the Japanese company could come under fire again in the future, especially if it decides to spin off its North American operations.
Meanwhile, pressure from activist investors is mounting on Seven & i's board, which is now called upon to demonstrate its ability to generate value independently. Couche-Tard, who had also considered alternative solutions such as a partial acquisition, confirmed that he does not intend to proceed with a hostile takeover bid.
