Tokyo-based Japanese retail holdings company Seven & i Holdings (7&i) and Alimentation Couche-Tard (ACT) have agreed to assess the feasibility of a divestment strategy by outlining the functional, administrative and fiscal attributes of the store cluster earmarked for sale and pinpointing prospective purchasers.
The option, one of the three suggested, will be explored by the companies without a formal accord in place.
7&i communicated this update to its investors through a formal notice, providing further information on its special committee’s active discussions with ACT and other interested parties considering the acquisition of the company.
This correspondence also included details about the ongoing process for executive succession planning.
In the letter, Seven & i stated: “We and our advisors believe we can now make progress towards determining whether a credible and actionable remedy and divestiture package can be achieved that would allow a realistic assessment of ACT’s proposal under the areas we noted above – value and certainty of closing.”
In October 2024, ACT proposed acquisition of 7&i for $47bn after its initial offer, which pegged shares at $14.86 each, was rejected. In early March 2025, 7&i appointed Stephen Dacus as its new CEO and revealed other capital and business initiatives.
The special committee has recommended that 7&i and ACT undertake collaborative efforts at the outset, rather than waiting until a contract with ACT is finalised.
The committee was established to ensure impartial and thorough analysis of the proposal from ACT, as well as assess other options. This will enable the organisation to react swiftly to any changes during potential discussions with ACT.
It outlined three practical measures that ACT could adopt to reduce potential risks. The first was that ACT has the option to sell off its entire portfolio of stores, including the Circle K outlets in the US, thereby eliminating any concerns related to US antitrust regulations.
The second option was ACT could enter into a binding agreement to sell at least 2,000 stores earmarked for divestiture. This agreement would need to be established as a mandatory condition before any final merger agreement is signed between 7&i and ACT.
Meanwhile, Artisan Partners, a US-based stakeholder in 7&i, contested the company’s CEO succession strategy and advocated for a re-evaluation of ACT’s takeover bid in a communication to the board.
In response to Artisan Partners’ letter, Seven & i stated: “We appreciate the positive and constructive feedback we received from investors since making this announcement. We also note the letter sent to the board by Artisan Partners Asset Management. We are disappointed that Artisan has prejudged our commitment to pursuing all paths to unlock shareholder value without knowing all the facts.”
