Convenience retailers around the world are trying to wrap their heads around the failed megamerger between Alimentation Couche-Tard and Seven & i Holdings.
Nearly a year after its initial bid, Circle K’s parent company withdrew its almost $50 billion buyout offer for Seven & i, operator of over 80,000 7-Eleven c-stores globally, late last week due to what it called a lack of engagement from Seven & i’s leadership. Couche-Tard emphasized that Seven & i lacked “good faith and judgement” during the process.
Seven & i called Couche-Tard’s accusations a mischaracterization. It followed up again yesterday morning, emphasizing that it “consistently engaged in good faith” and was “ready to go the distance to determine if a solution could be found” for the deal to materialize.
“We understand and respect the operational, financial and market challenges [Couche-Tard’s] business is facing, and we recognize how financing markets have changed,” Seven & i’s special committee, spearheaded by Chair Paul Yonamine, said in a letter on Tuesday. “But there is no need to blame Seven & i for that reality. ACT decided on its own it was easier to walk away.”
Amid the contradictory statements, it’s clear that talks are over — for now. Some experts think a deal for the thousands of 7-Eleven c-stores in North America could still be on the table for Couche-Tard. But even if that were to materialize, it would likely come far into the future.
For now, all the c-store industry can do is look back at what led to this juncture. Here’s a recap of some of the key moments of the saga, from Couche-Tard’s initial bid to last week’s withdrawal.
