Couche-Tard Drops $46 Billion Bid for Japan’s 7-Eleven Owner

Canada’s Alimentation Couche-Tard withdrew its $45.8 billion proposal for Seven & i Holdings, blaming a “calculated campaign of obfuscation and delay” by the Japanese owner of 7-Eleven for ending its year-long pursuit. A deal could have been the largest foreign takeover of a Japanese company. While some questioned whether Couche-Tard might destroy the food quality and customer experience of Japan’s famed combini, the talks had raised hopes that the country was finally opening up to foreign takeovers, with improved corporate governance and greater attention to shareholders.

“The moat of Japanese protectionism proved too much for Couche-Tard to cross,” said Andrew Jackson, head of Japan equity strategy at Ortus Advisors. “It was always highly unlikely that this was going to be successful given Seven & i’s positioning as one of Japan’s most successful global companies and the fast closing of the ranks.”

Still, the talks forced Seven & i to change. The company appointed its first foreign CEO, agreed to sell its superstore business and proposed a ¥2 trillion share buyback. It also announced a possible listing of its US business, although there are doubts over whether such a move is now needed. Seven & i’s shares fell around 9% on Thursday, and there’s pressure on management to show it can do it alone.