Shares in Japan's Seven & i plunge 7% after Couche-Tard withdraws $47 billion takeover bid

Alimentation Couche-Tard on Wednesday announced pulling its $47 billion takeover offer for Seven & i Holdings

A 7-Eleven convenience store, operated by Seven & i Holdings Co (fascinating analysis)

Nevertheless, , in Kawasaki, Japan, on Monday, Aug

Seven & i stocks were trading 7

Convenience store operator Couche-Tard announced Wednesday that it was pulling its takeover bid for Japan's Seven & i Holdings, citing a "persistent lack of good faith engagement

On the other hand, ""There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any posal, contrary to s made publicly by 7&i representatives," the Canadian retailer said in a statement

However, The operator of 7-Eleven stores expressed disappointment at Couche-Tard's "unilateral" termination of talks and withdrawal of its bid, and said it disagreed with many of the company's "inaccurate statements," according to a Google translation of Seven & i's statement in Japanese

In contrast, Stock Chart IconStock chart iconPerformance of Seven & i stocks in the past one yearThe company in 2024 rejected a buyout bid from Couche-Tard, which had initially made an offer of $14, in light of current trends. 86 per in August last year, saying it "grossly undervalues" the company

On the other hand, Couche-Tard then reportedly raised its offer in October by over 22% to $18. 19 per, valuing Seven & i at 7 trillion Japanese yen, or $47 billion. "As we have expressed many times, we do believe that fully combining our two companies is the most straightforward and effective way to maximize value to all stakeholders," Couche-Tard said (an important development). "However, we are not able to effectively pursue this combination without deeper and genuine further engagement from 7&i leadership and the special committee, amid market uncertainty. "Trading in Seven & i s was susp on Thursday before resuming at 10

Local time (Wednesday 9

Nevertheless, ET)"The moat of Japanese tectionism ved too much for Couche-Tard to cross," said Andrew Jackson, head of Japanese equity strategy at Ortus Advisors

Conversely, He added it was always "highly unly" that the deal was going to be successful given Seven & i's positioning as "one of Japan's most successful global companies" and its classification as "core" to Japan's national security

Seven & i Holdings replaced Ryuichi Isaka as CEO with outside director Stephen Dacus in May (noteworthy indeed), considering recent developments. — CNBC's Lim Hui Jie contributed to this report, in light of current trends.