Key Facts:
Canadian company Alimentation Couche-Tard (ACT), operator of Circle K has expressed interest in acquiring Seven & i Holdings and has recently made a low-ball, $39 billion takeover offer.
ACT sees Seven & i Holdings, the parent company of 7-Eleven, as a "cheap" stock compared to its global counterparts (Why does Couche-Tard want to buy 7-Eleven? It's a 'cheap' stock, says portfolio manager (cnbc.com)).
ACT believes it can enhance Seven & i's corporate value, especially by growing 7-Eleven's global presence and divesting underperforming segments like its supermarket business.
The proposal has led to a significant increase in Seven & i Holdings' stock price, indicating positive market sentiment (Seven & i defence calls for radical strategy | Reuters).
Seven & i Holdings rejected the initial offer and is seeking a "core" company designation under Japan's Foreign Exchange and Foreign Trade Act to gain protection from foreign takeovers (Seven & I gets new designation, a potential hurdle for takeover - The Japan Times).
The designation would recognize Seven & i as a company of strategic importance to Japan’s economy, making it harder for foreign entities to acquire a significant stake without government approval.
New guidelines from (METI) Ministry of Economy, Trade and Industry on corporate takeovers and (TSE) Tokyo Stock Exchange reforms have helped pave the way for a new era of Japanese corporate governance and dealmaking in the region (Why Japan’s M&A Boom is Here to Stay | J.P. Morgan (jpmorgan.com).
Recent government and market reforms designed to improve corporate governance and capital management have encouraged corporates to embrace a more transparent, pro-growth agenda leading to a wave of dealmaking in Japan.
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