Canadian convenience store giant Alimentation Couche-Tard has officially withdrawn its $47 billion offer to acquire Japan’s Seven & i Holdings, the parent company of 7-Eleven. The decision marks the end of what could have become Japan’s largest foreign acquisition.
In a letter addressed to its board, Couche-Tard said it made the move due to a lack of sincere and open dialogue from the Japanese company.
Couche-Tard, which owns Circle K, aimed to merge with Seven & i to form a global retail leader in the convenience store industry. However, its efforts were met with resistance.
“There has been no sincere or constructive engagement from 7&i that would help move forward any proposal,” Couche-Tard stated in the letter. The Canadian firm also accused Seven & i of using tactics to stall and confuse the process, claiming it hurt shareholders.
Seven & i responded by saying it was not surprised by Couche-Tard’s decision, but it disagreed with how the situation was described.
This development could have broader implications. The move was seen as a test of how open Japanese firms are to foreign ownership. Recently, another major deal, Nippon Steel’s $14.9 billion purchase of US Steel, had shown some openness in cross-border mergers.
Following the announcement, Seven & i shares dropped by 9% in early trading in Tokyo. Investors reacted quickly to the news, signaling concern over lost opportunities.
Maso Capital, a Hong Kong-based investment firm and shareholder in Seven & i, expressed disappointment. Co-founder Manoj Jain said the lack of willingness to talk was unfortunate. He believed the merger would have created great value and had voiced this opinion to the company’s management.
Couche-Tard had originally offered around $47 billion for Seven & i in 2023. By March 2025, it was ready to raise the bid if the Japanese firm agreed to share more financial data. The Canadian retailer also proposed a plan to sell off some stores to ease regulatory concerns.
At one point, the deal seemed possible. A separate offer from the founding Ito family of Seven & i, which might have blocked the Couche-Tard deal, failed to gain the needed funding. This opened a clearer path for the Canadian firm.
Despite this, Couche-Tard said it could not get meaningful talks with the Ito family either.
Both sides had signed a non-disclosure agreement, allowing for due diligence. But Couche-Tard said the access it was given was very limited. Only two tightly controlled management meetings were held, and important information was missing.
The company’s letter described the due diligence process as “negligible,” suggesting it did not get enough access to make an informed decision about the merger.
Couche-Tard’s withdrawal brings the ambitious takeover attempt to an abrupt stop. Analysts say the situation may discourage other foreign firms from trying similar deals in Japan.
The outcome also raises questions about how shareholder value is treated by Japanese corporate boards, especially when international investors are involved.
Couche-Tard has not ruled out future deals, but this one is now officially off the table.
