TOKYO, Sep 06 (V7N) - Seven & i Holdings, the Japanese owner of 7-Eleven, announced on Friday that it has turned down a takeover offer from Canadian retail giant Alimentation Couche-Tard. The company described the bid as significantly undervaluing its worth.

The proposed acquisition of Seven & i Holdings by Couche-Tard would have been the largest foreign purchase of a Japanese company to date, uniting 7-Eleven, Circle K, and other retail brands across Asia, North America, and Europe.

As the largest convenience store chain globally, 7-Eleven operates over 85,000 stores worldwide. Although it originated in the United States, 7-Eleven has been entirely owned by Seven & i since 2005.

In a response letter to Couche-Tard, Seven & i's board expressed willingness to discuss further if a revised offer that accurately reflects the company’s intrinsic value is presented. The board criticized the current proposal, stating it was "opportunistically timed" and did not consider the potential for additional value creation.

The board also raised concerns about regulatory hurdles, citing that the proposal failed to address the significant challenges from U.S. antitrust regulations.

Seven & i Holdings, which operates many 7-Eleven stores in Japan where the brand is highly valued, also includes other businesses such as a major supermarket chain, Denny’s restaurant chain, and Tower Records, which has faced bankruptcy.

The company has reportedly requested that the Japanese government classify parts of its business as "core," a designation that would complicate any potential takeover.

Despite this, Couche-Tard remains optimistic about the acquisition. CEO Brian Hannasch indicated that the company might consider increasing its financial offer if necessary, highlighting its strong financial position.

Following the announcement, Seven & i's stock dropped by 1.9 percent in Tokyo.

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