Dive Brief:
- Alimentation Couche-Tard has withdrawn its bid to acquire Seven & i, the parent company of 7-Eleven, the convenience retailer announced on Wednesday.
- Couche-Tard, parent company of Circle K, said it reached this decision due to a “lack of constructive engagement by Seven & i.” In a separate letter, Seven & i called that a mischaracterization and acknowledged the “significant changes in the global economy, exchange rates, and financing markets” that likely impacted Couche-Tard’s decision.
- While this ends one of the biggest c-store stories of the past year, both companies have major initiatives at hand, with Couche-Tard integrating GetGo Cafe + Market into its operations while Seven & i prepares to take its North American operations public.
Dive Insight:
In its final salvo of this acquisition saga, Couche-Tard again took aim at what it called Seven & i’s “persistent lack of good faith engagement.” It outlined a series of what it felt were limited and unproductive meetings and a lack of movement once the two companies signed an NDA and began to seriously pursue a store divestment package that would appease FTC requirements for the deal.
“Since entering into the NDA, there has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives, including in the July 11, 2025 earnings call in which 7&i noted it is ‘seriously’ considering our proposal,” Couche-Tard’s President and CEO Alex Miller and Chairman of the Board Alain Bouchard said in the letter.
Couche-Tard’s letter also outlined two alternative transaction structures that the companies put forth. Couche-Tard proposed buying all of Seven & i’s non-Japanese operations as well as a 40% stake in 7-Eleven Japan. Seven & i, on the other hand, offered to trade 7-Eleven Inc., its North American branch, for equity ownership in Couche-Tard.
“This structure would not deliver the significant premium that was offered to your shareholders in our transaction proposals and, in our view, would undermine the operational prospects of the combined business,” said Miller and Bouchard in the letter.
In its letter, Seven & i highlighted its standalone value creation plan, including the sale of its superstore business and the North American IPO. The proceeds from both would be used to pay for about 2 billion yen ($13.5 million) worth of share buybacks.
“We are also highly focused on moving quickly to improve key areas of our operations to enhance performance metrics over both the medium and longer term,” Seven & i noted in its announcement.
Couche-Tard first made a bid for Seven & i last August, which was quickly rejected. The Canadian retailer made a second offer, and the companies slowly proceeded from there, with both sides occasionally accusing the other of slowing down the process. Antitrust concerns in the U.S. were among the biggest issues for Seven & i, but with Couche-Tard’s decision to back out, the deal failed before facing those questions.
With its bid for Seven & i withdrawn, Couche-Tard can now turn its attention to integrating GetGo’s 270 c-stores, which it bought from grocer Giant Eagle for $1.6 billion last month.
