Investing.com – Canadian Retail Giant Alimentation Coach Tard Company The Toronto Stock Exchange (TSX:) said it has made an initial offer to buy Japan’s Seven & i Holdings (TYO:), owner of the 7-Eleven chain, on Monday.
Seven & I Holdings said in a statement that the company received a confidential, non-binding takeover offer from Alimentation Couche Tard.
In response to media reports regarding the offer, Seven & i Holdings confirmed that its board has formed a special committee to review the offer. The committee is chaired by Stephen Hayes Dacus, who is the chairman of the board.
“We view 7&i’s decision to maintain the independence of the Committee as
“The results are positive, but hurdles remain in terms of transaction volume and antitrust issues,” Jefferies analysts said in a note.
“Excluding pricing, we believe this is a reasonable proposition for Alimentation Couche-Tard given its track record of closing 75 M&A deals (+13K units) since 2004, its focus on expanding its US footprint and its target of $10 billion EBITDA by 2028, equivalent to a 12% CAGR,” the analysts said.
The company explained in its statement that no decision has been made yet regarding accepting or rejecting Alimentation Couche-Tard’s offer.
The company said the board of directors and the special committee have not entered into any formal discussions with Alimentation Couture or sought alternative transactions at this time.
CoucheTard confirmed Monday that it has made a non-binding offer to acquire Seven & i Holdings. While the company said it is focused on reaching a mutually beneficial agreement, it also cautioned that there are no guarantees the deal will go through, Bloomberg reported.
Seven & i Holdings shares closed up 22.7% on Monday.