Big profit declines at Seven & I Holdings are ratcheting up pressure on the parent of 7-Eleven to engage in talks with Canadian convenience-store giant Alimentation Couche-Tard Inc.
Speaking to investors on Thursday, Seven & i president Ryuichi Isaka said the company had been “slow to respond to the changes in the environment and have caused great trouble in terms of our business performance.” Financing such a gigantic transaction would be a challenge, particularly given Couche-Tard has pledged to get any potential deal done entirely in cash.
“ATD’s revised offer is much closer to where we suspect Seven’s board is on price, but it may still fall short,” Ms. Chen said. Although Seven & i said in its statement Wednesday that it is in “current discussions” with Couche-Tard, the source said no substantive negotiations have taken place since the higher offer was submitted.