The Japanese owner of convenience store chain 7-Eleven has rejected a $38bn (£29.2bn) takeover offer from its Canadian rival.
In a letter to Alimentation Couche-Tard (ACT), Circle K owner Seven & i Holdings said the Canadian company’s offer “massively” undervalues the company and poses significant legal risks.
However, the 7-Eleven owner added that they remain open to negotiations and are willing to consider a better offer.
ACT did not immediately respond to BBC News’ request for comment.
“The special committee believes your proposal is well-timed and seriously underestimates our path to independence and the additional courses of action we see to realize and unlock shareholder value,” Seven & i said in the letter, referring to a special committee it formed to consider the offer.
ACT’s offer comes at a time when the Japanese yen has weakened significantly against the US dollar, making Seven & i more affordable for foreign buyers.
“Your proposal fails to fully acknowledge the significant and diverse challenges such a transaction would face from US competition law enforcement agencies,” Seven & i added in the letter.
7-Eleven is the world’s largest convenience store chain, with 85,000 stores in 20 countries and territories.
ACT’s footprint in the United States and Canada would double to about 20,000 locations if the deal goes through.
