Seven & i: The Aftermath of Rejecting a Proposal

The Canadian convenience store giant Couche-Tard had been aggressively pursuing an acquisition of Seven & i Holdings for a year. That "romance" has finally reached a conclusion.

It was clear that what Couche-Tard wanted from Seven & i Holdings was exclusively 7-Eleven. They likely had no interest in other businesses and continued their "persistent" approach.

However, frustrated by Seven's indecisive response, Couche-Tard finally withdrew its proposal.

Immediately after, they released a letter stating, Seven dragged things out and did not engage with us seriously. That "breakup letter" even detailed the inner workings of the negotiation process and seemed to shift the responsibility onto the other party... (@_@)

As a result, Seven & i Holdings' stock price fell by approximately 10%.
Investors who had hoped for a "merger" were deeply disappointed, and ironically, immediately after rejecting the proposal, the company's value dropped, creating a situation where it is now being targeted by "the next suitor."

In the business world, a drop in stock price is seen as an opportunity for acquisition. Aware of this, Seven & i Holdings has steered toward "improving corporate value" on its own, through measures such as an IPO of its U.S. subsidiary, share buybacks (up to 2 trillion yen), and dividend increases.

However, the company still faces a mountain of challenges in terms of performance. Domestic and international convenience store operations are stagnant or struggling, and the growth gap with competitors is becoming increasingly apparent.

The market remains critical, continuing to ask, "Can they really recover on their own?"

☝️ In addition, I have recently heard about consumer distrust regarding 7-Eleven, such as issues with "bottom-heavy containers" and "increased volume? campaigns." Restoring brand image does not depend on gimmicks, but on steady product improvement and sincere responses.

Companies are just like relationships. It is in how one behaves "after the rejection" that the true worth of a person (or company) is revealed.

Seven & i Holdings has chosen to forge its future not through external pressure but through its own efforts. That resolve is now being put to the test.