Seven & i Shares Plunge 12% After Rejecting $47B Couche-Tard Takeover Bid

Seven & i Holdings plans to reject a $47 billion takeover offer from Canadian operator Alimentation Couche-Tard and will focus on enhancing its corporate value independently. President Ryuichi Isaka, 67, is set to step down, with independent director Stephen Hayes Dacus, 64, expected to replace him, making Dacus the first foreign national to lead the company if appointed. A board meeting is planned to finalize the decision. The takeover bid had initially prompted Seven & i’s founding family to consider a management buyout (MBO), but they abandoned this plan in February due to financial concerns.

A special committee of independent directors evaluated whether to accept the offer or maintain independent management, ultimately deciding to reject the bid. Concerns over potential U.S. antitrust issues related to overlapping store networks between Seven & i and Couche-Tard played a significant role in this decision.

Seven & i Shares Plunge 12% After Rejecting $47B Couche-Tard Takeover Bid

Shares of Seven & i Holdings dropped by as much as 12% on March 4, following reports that the Japanese company plans to reject a $47 billion takeover offer from Canada’s Alimentation Couche-Tard, despite still considering the proposal. The company’s stock fell 8% to 2,023 yen by the afternoon in Tokyo, after touching a six-month low earlier in the day.

The Yomiuri newspaper reported that Seven & i intends to decline Couche-Tard’s offer and instead focus on enhancing its own corporate value. However, a Seven & i spokesperson stated that the company remains open to exploring all opportunities, including Couche-Tard’s offer, and is engaging constructively with the company. Additionally, Seven & i is finalizing plans for CEO Ryuichi Isaka to step down, with director Stephen Dacus expected to succeed him. Dacus leads the special committee evaluating the takeover bid and the collapsed deal for a take-private offer from Seven & i’s founding family.

Seven & i Holdings Co. plans to reject a takeover offer from Canadian convenience store operator Alimentation Couche-Tard and intends to focus on boosting its corporate value independently. Sources revealed that the company is finalizing plans for President Ryuichi Isaka, 67, to step down, with independent director Stephen Hayes Dacus, 64, set to replace him. Dacus, currently the chairman of the board, would become the first foreign national to lead the company if appointed. A board meeting is expected soon to formalize the decision.

The takeover offer from Couche-Tard led Seven & i’s founding family to consider a management buyout (MBO), but they abandoned the plan in February due to financial concerns. A special committee of independent directors discussed whether to accept the proposal or enhance the company’s value to remain independent. The committee ultimately decided to maintain independent management, partly due to concerns that the takeover might violate U.S. antitrust laws because of overlapping store networks.

To reinforce this decision, there are calls for leadership changes, with Dacus, who has led the discussions on the takeover, set to take the helm. The decision to reject the takeover proposal and maintain independence is seen as a pivotal moment for Seven & i, and the leadership shift is viewed as a necessary step in reshaping the company’s future direction. Dacus, with his extensive experience as an independent director and his role in leading the special committee on the Couche-Tard bid, is seen as a stabilizing figure who can help navigate the company through the challenges of staying independent while enhancing corporate value.

His leadership is expected to bring a fresh perspective, particularly as Seven & i focuses on improving its business operations and long-term growth strategies. Dacus has been deeply involved in the discussions surrounding the offer, and his appointment would signal a break from the previous management’s approach, especially with Isaka’s resignation. The shift in leadership aims to strengthen internal confidence and demonstrate to shareholders and the market that the company is committed to growing its value through strategic internal initiatives rather than relying on external offers.

This move could also help Seven & i address its global expansion strategy and operational challenges, particularly in the competitive retail sector, where Couche-Tard’s offer highlighted the pressures the company faces from larger international players.