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Couche-Tard says talks with Seven & i over takeover bid 'friendly'
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TOKYO (Kyodo) -- Canada's Alimentation Couche-Tard Inc., the operator of Circle K convenience stores, said Thursday that its discussions with Seven & i Holdings Co. to acquire the Japanese rival have been "friendly" and that it is not considering a hostile takeover.
At a press conference, the first held in Japan by the company since the buyout talks surfaced last year, Couche-Tard founder and Chairman Alain Bouchard said the two companies' operations combined would create strong synergy.
"Japanese operations are truly worldclass. For a long time, we have a belief there is a unique strategic fit" between the two retailer's convenience store brands, he said.
But he also said he was "disappointed" that Seven & i has only been focusing on regulatory issues in the United States related to antitrust concerns generated by the potential deal.
The Canadian company sees "a clear path" to regulatory approval given that it has completed many acquisitions in the world's biggest economy, CEO Alex Miller said at the press conference, while Bouchard said the company will continue to pursue the deal even if it takes time.
Amid growing concerns among 7-Eleven store owners in Japan about the potential change of hands, the company said it will invest in the country and create jobs and has no plan to close stores or fire employees.
"We deeply respect the role Seven & i plays in the nation," Bouchard said, referring to how the convenience store operator has grown to be part of the social infrastructure.
The comments came as the companies remain embroiled in an increasingly acrimonious dispute, following Couche-Tard's takeover proposal for the operator of 7-Eleven convenience stores.
Seven & i said Monday it had called on the Canadian company to sell all of its stores in the United States to address antitrust concerns.
Earlier this month, the Japanese company appointed a new CEO and unveiled a series of measures, including a massive share buyback and the sale of its supermarket subsidiary to U.S. private equity firm Bain Capital, as it seeks to enhance its corporate value and fend off the proposed acquisition.
The Japanese company's founding family sought to take the firm private but recently gave up on the plan after facing difficulty in securing funding.
The envisaged deal, costing around 9 trillion yen ($61 billion), would have been the biggest management buyout in Japan, according to Recof Data.
Seven & i said in August last year that it had received a takeover proposal from Couche-Tard, estimated at over 7 trillion yen.
Seven & i operates more than 80,000 convenience stores around the world. The Canadian company, which also runs the Couche-Tard brand convenience store chain, has about 17,000 stores in over 30 countries and regions.
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