New roadblocks ahead for Couche-Tard’s takeover bid of 7-Eleven’s parent company
Alimentation Couche-Tard Inc.’s ongoing efforts to acquire Japanese retail giant Seven & I would likely run into national security concerns, said Japan's economy minister Ryosei Akazawa according to a report in Reuters.
Akazawa’s remarks the first public comments by a senior government official over potential security concerns in Couche-Tard attempts to buy the operator of the global 7-Eleven convenience store chain.
Last year, when Couche-Tard made bids to take on the company, Seven & i was classified as "core" to Japan's national security. Others raised concerns over the fact that 7-Eleven in Japan operates as more than a simple convenience store, making available government services and playing a critical role in national emergencies, such as ensuring during a national disaster that food and other critical supplies are delivered to affected communities.
"If Seven & i's convenience store business is in foreign hands and run solely for profits, we'll have to think about various things, such as whether we can we get full support when our people affected by the disaster are suffering," Akazawa said at the Japan National Press Club.
READ: Seven & i Holdings Co. plans to restructure to fend off buyout from Couche-Tard
In October of last year, the company restructured in order to fend off Couche-Tard buyout bid.
According to BNN Bloomberg, Seven & i Holdings Co. moved to rename itself as 7-Eleven Corp. and let go dozens of what the company said were non-core businesses.
Earlier, Couche-Tard sent a revised confidential, private and non-binding proposal to the company of US$47 billion, some 22% higher than the offer of $38.6 billion Couche-Tard made in August of last year.
The restructuring involved some separating 31 subsidiary businesses, including the Ito-Yokado, speciality stores and the Denny’s restaurant brand and pace them in a new holding company, York Holdings.
The company’s Japanese convenience business, along with the U.S. operations and operations around the globe, will be under the new 7-Eleven Corp.
