Tuesday, October 8, 2024

Couche-Tard Responds to Seven & I Holdings

LAVAL, September 10, 2024 – Alimentation Couche-Tard Inc. (TSX: ATD), a global leader in convenience and mobility, has issued a statement addressing Seven & I Holdings Co., Ltd.’s (7&i) refusal to engage in discussions regarding Couche-Tard’s non-binding proposal for a potential merger. The proposed combination was aimed at creating a leading global retail platform with over 100,000 locations across Asia-Pacific, North America, Australia, and Europe.

Couche-Tard expressed disappointment over Seven & I holdings’ decision, emphasising the significant strategic and financial benefits the merger could offer to customers, employees, franchisees, and shareholders of both companies. “We continue to have strong conviction that a combination with 7&i would create unparalleled value,” the statement noted, underscoring the companies’ complementary business models and shared values.

The combination, according to Couche-Tard, would allow both entities to achieve more than they could independently, including expanding the iconic 7-Eleven brand and driving innovation in sustainability. Despite Seven & I holdings’ refusal to engage in friendly discussions, Couche-Tard remains open to collaboration and hopes to reinitiate talks in the future.

Regulatory and Financial Confidence

Couche-Tard also addressed concerns regarding regulatory approvals, affirming its successful track record of navigating acquisitions and working with regulators in the US and abroad. In addition, Couche-Tard stated that it has sufficient capacity to finance the transaction and that financing would not be a barrier to completing the deal.

“We have a strong balance sheet and excellent credit ratings,” the company stated, reiterating its readiness to move forward with the transaction if given the opportunity.

Looking Ahead

Couche-Tard remains optimistic about the potential value this combination could unlock, not only for shareholders but for the broader retail landscape. The company has a history of delivering shareholder returns and believes a partnership with Seven & I holdings co,  would enhance both companies’ ability to serve customers and achieve their sustainability goals.

While Seven & I holdings has not yet agreed to engage in discussions, Couche-Tard remains hopeful for a future partnership, stating, “We stand ready to collaborate with Seven & I holdings to create a leading global retail platform that will shape the future of convenience retail.”

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