Shares of Japan-based Seven & i Holdings (JP:3382) soared after it reportedly received a premium takeover offer from its Canada-based rival firm Alimentation Couche-Tard (TSE:ATD). According to Bloomberg, Couche-Tard is prepared to offer nearly $47 billion for the takeover of Seven & i, marking a 20% increase over its previously rejected proposal. Following the news, Seven & i shares in Tokyo surged more than 10% initially, before settling with a 5% gain as of writing.
Seven & i Holdings manages a range of businesses through its subsidiaries, while Alimentation Couche-Tard operates global convenience stores, including the popular Circle K brand.
Couche-Tard Raises Bid in High Stakes Takeover Battle
The potential merger of Couche-Tard with Seven & i would form one of the largest retail chains in the U.S. The Financial Times earlier reported that Couche-Tard has been interested in this acquisition for several years and has made occasional contact to start friendly negotiations.
Couche-Tard initially reached out to Seven & i in August, making the latter the largest Japanese company ever targeted for foreign acquisition. Later, the Japanese group turned down an offer of $38.5 billion from Couche-Tard in September. Seven & i stated that the offer undervalued its business and failed to consider the regulatory challenges. However, Couche-Tard had indicated its desire to reopen takeover discussions after the rejection.
Meanwhile, Seven & i will announce its Q2 results for FY25 on October 10.
What Is the Price Target for Seven & i Stock?
As per the consensus among analysts on TipRanks, 3382 stock has been assigned a Moderate Buy rating based on one Buy and two Hold recommendations. The Seven & i Holdings share price target of ¥2,326.04 implies an upside of 4.7% from the current share price level.
