Canadian convenience store giant Alimentation Couche-Tard (ACT), which has been trying to engineer a purchase of 7-11 parent company Seven & i Holdings (7&i) for nearly a year, has ended its quest to create a multinational c-store behemoth.
In March 2025 ACT called for “full engagement” in the merger talks from 7&i, but in a letter sent to the 7&i board of directors on July 16, ACT blamed the Japanese company for failing to provide the necessary data needed to complete due diligence as well as a lack of constructive conversations at meetings between the two companies — despite both retailers signing non-disclosure agreements (NDAs) in May 2025.
In its letter, ACT said: “Since entering into the NDA, there has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives, including in the July 11, 2025 earnings call in which 7&i noted it is ‘seriously’ considering our proposal. As discussed below in detail, the quantity and substance of the permitted due diligence, including at two tightly constrained management meetings, have been negligible. Rather, you have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7&i and its shareholders. We believe this approach reinforces our concerns about your approach to governance. Based on this persistent lack of good faith engagement, we are withdrawing our proposal.”
For its part, 7&i confirmed in a statement that ACT had “unilaterally decided to end discussions and withdraw its proposal to acquire the company. While we are disappointed by ACT’s decision, and disagree with their numerous mischaracterizations, we are not surprised.”
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The 7&i statement also noted that since ACT made its initial proposal, “there have been significant changes in the global economy, exchange rates and financing markets. As ACT noted on its most recent earnings call, conditions in key markets have deteriorated since last year.” 7&i also noted that it had always been honest about “the extraordinary antitrust hurdles a potential transaction would face, including the protracted timeframe to move through the regulatory process.”
