The proposed $47 billion acquisition of Japan’s Seven & i Holdings by Canada’s Alimentation Couche-Tard (ACT) would have been the largest foreign takeover in Japanese history.
Instead, after nearly a year of overtures, negotiations, and political maneuvering, ACT withdrew its offer in mid-July, citing a persistent lack of engagement and transparency from the Japanese retail giant, parent of 7-Eleven.
From ACT’s perspective, the deal was scuttled by a “calculated campaign of obfuscation and delay.” Despite a fully financed offer at a 47.6% premium, ACT claimed it was denied meaningful due diligence and access to key executives. Meetings in Dallas and Tokyo were described as tightly scripted and unproductive. ACT also accused Seven & i of withholding information necessary to identify divestiture buyers, critical for meeting US regulatory hurdles.
Seven & i, for its part, was “disappointed but not surprised” by ACT’s decision. Its board said the offer “grossly undervalued” the company’s long-term potential, calling it “opportunistically timed” given ongoing restructuring efforts. Seven & i also raised serious antitrust concerns, arguing that ACT had failed to detail how it would address likely regulatory demands in the US, where 7-Eleven generates 75% of group revenue.
Behind the scenes, political and cultural factors may have weighed heavily as well. The Japanese government backed Seven & i’s decision to reclassify itself as a “core” company, subjecting any foreign acquisition of more than 10% of shares outstanding to heightened scrutiny. Officials warned that foreign ownership could compromise disaster response capabilities for which the convenience store network provides critical support.
Timothy Connor, CEO of Synnovate, which advises Western companies on Japanese market strategy, offered a stark assessment. “For those of us in the business of helping foreign companies enter the Japanese market,” he says, “the ACT approach to Seven & i was a classic example of what not to do. You must do the homework and learn the market first, and you need local expertise.”
He adds that ACT never showed real cultural intelligence or how it could be a viable partner failed to demonstrate how it would add value, and misunderstood the role konbini (convenience stores) play in Japan: not just as stores, but as trusted community hubs.
