ACT and 7&i to explore store viability and buyer potential

Tokyo-based Japanese retail holdings institution Seven & one Holdings (7&i) and Alimentation Couche-Tard (ACT) person agreed to measure the feasibility of a divestment strategy by outlining the functional, administrative and fiscal attributes of the store clump earmarked for merchantability and pinpointing prospective purchasers.

The option, 1 of the 3 suggested, volition beryllium explored by the companies without a ceremonial accord successful place.

7&i communicated this update to its investors done a ceremonial notice, providing further accusation connected its peculiar committee's progressive discussions with ACT and different funny parties considering the acquisition of the company.

This correspondence besides included details astir the ongoing process for enforcement succession planning.

In the letter, Seven & one stated: "We and our advisors judge we tin present marque advancement towards determining whether a credible and actionable remedy and divestiture bundle tin beryllium achieved that would let a realistic appraisal of ACT's connection nether the areas we noted supra – worth and certainty of closing.”

In October 2024, ACT projected acquisition of 7&i for $47bn aft its archetypal offer, which pegged shares astatine $14.86 each, was rejected. In aboriginal March 2025, 7&i appointed Stephen Dacus arsenic its caller CEO and revealed different superior and concern initiatives.

The peculiar committee has recommended that 7&i and ACT undertake collaborative efforts astatine the outset, alternatively than waiting until a declaration with ACT is finalised.

The committee was established to guarantee impartial and thorough investigation of the connection from ACT, arsenic good arsenic measure different options. This volition alteration the organisation to respond swiftly to immoderate changes during imaginable discussions with ACT.

It outlined 3 applicable measures that ACT could follow to trim imaginable risks. The archetypal was that ACT has the enactment to merchantability disconnected its full portfolio of stores, including the Circle K outlets successful the US, thereby eliminating immoderate concerns related to US antitrust regulations.

The 2nd enactment was ACT could participate into a binding statement to merchantability astatine slightest 2,000 stores earmarked for divestiture. This statement would request to beryllium established arsenic a mandatory information earlier immoderate last merger statement is signed betwixt 7&i and ACT.

Meanwhile, Artisan Partners, a US-based stakeholder successful 7&i, contested the company's CEO succession strategy and advocated for a re-evaluation of ACT's takeover bid successful a connection to the board.

In effect to Artisan Partners' letter, Seven & one stated: “We admit the affirmative and constructive feedback we received from investors since making this announcement. We besides enactment the missive sent to the committee by Artisan Partners Asset Management. We are disappointed that Artisan has prejudged our committedness to pursuing each paths to unlock shareholder worth without knowing each the facts.”