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A MULTI-BILLION dollar bid by Circle K to take over another huge convenience store chain has been rejected.
The retailer proposed a deal worth $38.5 billion to acquire 7-Eleven but the rival chain revealed why it turned down the money.
A Circle K gas station and convenience store in Orlando, Florida (stock image)[/caption]
The exterior of a 7-Eleven convenience store in Los Angeles, California (stock image)[/caption]
Circle K’s owners Alimentation Couche-Tard offered to acquire all of 7-Eleven’s outstanding stock, which was valued at $14.86 per share.
This deal could have merged two of the country’s biggest chains.
The Japanese parent company of 7-Eleven, Seven & I Holdings, rejected the multi-billion dollar deal.
Despite this, Seven & I Holdings revealed that this potential deal was not totally off the table.
“We are open to sincerely consider any proposal that is in the best interests of 7&i shareholders and other stakeholders,” the chain wrote in a letter.
Seven & I Holdings’ response suggested Circle K had undervalued 7-Eleven.
“We will resist any proposal that deprives our shareholders of the company’s intrinsic value or that fails to specifically address very real regulatory concerns,” the letter added.
The letter expanded on the company’s worries about legal issues they could face with this potential merger.
Circle K and 7-Eleven have a huge presence across the country with thousands of stores each.
7-Eleven has over 9,400 locations while Circle K has over 6,900 branches, according to ScrapeHero.
A merger between these two chains would easily create the largest convenience store chain in the country.
Seven & I Holdings added further concern about potential legal issues that could be caused by this move.
“Your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from U.S. competition law enforcement agencies in the current regulatory environment and provides no certainty to closing,” the letter added.
RETAIL CHANGES
This move from Circle K’s parent company Alimentation Couche-Tard has not been the only major business move by the company.
The chain announced its plans to acquire hundreds of other stores, The U.S. Sun has previously reported.
Giant Eagle, a chain prominent in Indiana, Maryland, Ohio, Pennsylvania, and West Virginia, will sell all of its GetGo Cafe + locations to Alimentation Couche-Tard.
GetGo has 270 locations which will all be sold in the deal.
This acquisition is yet to be approved and is expected to go through in 2025.
The move has meant Giant Eagle will cease it’s convenience store operations and focus on its supermarkets and pharmacies.
This chain’s CEO, Bill Artman, revealed his business would invest more into its staff and locations.
