A proposed buyout of global c-store giant Seven & i by a group led by company vice president Junro Ito and major shareholder Ito-Kogyo has failed, Seven & i announced on Thursday.
After announcing in November that it intended to buy out the Japanese retailer, the group has now told Seven & i, the parent company of 7-Eleven, “that they have been unable to secure the financing required to submit a definitive proposal,” according to the announcement.
Seven & i’s special committee is still weighing a proposal from Alimentation Couche-Tard, parent of Circle K convenience stores. Seven & i said on Thursday it is actively working with Couche-Tard “to determine if an actionable proposal can be achieved that addresses the serious U.S. antitrust challenges that any such transaction would face.”
Couche-Tard originally announced in August that it was pursuing Seven & i. Seven & i rejected that first bid, but Couche-Tard has since entered a second proposal, which some of Seven & I’s investors have urged the company to seriously consider.
Experts have said that navigating antitrust challenges is one of the largest barriers to Couche-Tard closing this deal. The failed tie-up between grocery companies Albertson’s and Kroger highlighted just how hard it can be for two massive companies in the same space to merge. Couche-Tard and 7-Eleven are the largest c-store retailers in the U.S., with 7-Eleven operating over 10,000 in the U.S. and Couche-Tard boasting 7,000. If the two joined forces, they would encompass more than 10% of the nation’s c-stores.
One benefit that Couche-Tard’s buyout offer might have is that the Trump Administration’s approach to business is expected to be much friendlier to M&A than the Biden administration.
