Investing.com — Couche-Tard Inc., a prominent Canadian convenience store and fuel retailer, is maintaining its pursuit to acquire Seven & i Holdings Co., the Japanese company that owns the 7-Eleven chain.
Despite a new management buyout proposal for Seven & i valued at approximately $58 billion, Couche-Tard's CEO Alex Miller expressed the company's unwavering intent to proceed with a friendly acquisition strategy, according to Bloomberg News.
In a recent conference call with analysts, Miller emphasized Couche-Tard's commitment to a deal that would benefit shareholders, employees, and other key stakeholders of both organizations.
The Circle K owner had previously increased its offer in October to about $47 billion to take over Seven & i. However, the Ito family, founders of Seven & i, has presented a counter non-binding management buyout proposal estimated at around ¥9 trillion ($58.7 billion).
Seven & i has not yet responded to either of the acquisition proposals.
Miller also conveyed confidence in Couche-Tard's financial capacity to finalize the acquisition, highlighting the potential for growth and improved services for customers globally through the merger.
Despite these ambitious plans, Couche-Tard has encountered operational challenges over the past year. Economic headwinds have led to a reduction in spending by low-income consumers in both the company's stores and at its fuel pumps.
The second quarter earnings report, ending October 13, showed adjusted earnings per share of 74 cents, marginally missing analyst expectations.
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