HONG KONG - Following the proposal of a potential $38.5 billion deal, 7-Eleven operator Seven & I Holdings recently rejected an opening offer from Circle K operator Alimentation Couche-Tard. The convenience store giant noted that the bid was too low in relation to 7-Eleven’s global business.

While noting that it is “open” to “sincerely consider” any proposal that is in the best interests of its shareholders, Tokyo-based Seven & I Holdings released a statement saying it will “resist any proposal that deprives [its] shareholders of the company’s intrinsic value or that fails to specifically address very real regulatory concerns.”

Couche-Tard recently addressed the news, expressing continued interest and respect of the business.

"We believe that, working together, we can successfully reach and complete a mutually agreeable transaction. We believe a combination would significantly enhance the important roles our companies play in our customers’ daily lives. Together, we would create a leading global retail platform with over 100,000 sites spanning Asia-Pacific, North America, Australia, and Europe. Our complementary businesses, shared values and excellent strategic fit would allow us to achieve significantly more together than we could individually. This includes further expanding the iconic 7-Eleven brand internationally, enhancing relationships with franchisees around the globe and attracting and retaining world-class talent," the company said. To read the full statement, click here.

Couche-Tard’s offer to Seven & I Holdings was valued at $14.86 per share in cash for a total of $38.5 billion, Reuters calculated.

According to CNN, Seven & I Holdings noted that the potential deal did not “adequately acknowledge the multiple and significant challenges such a transaction would face from U.S. competition law enforcement agencies in the current regulatory environment.”

The Tokyo-based group currently operates more than 83,000 stores around the world, including 7-Eleven shops and the Speedway chain of gas stations in the United States.

Reports from The Financial Times state that Seven & I remains open to the possibility of a higher offer from the convenience chain operator.

We will continue to monitor the convenience sector and beyond for the latest industry updates.