The proposed acquisition of $ 47 billion on the seven and second property in Japan was by fractures in Canada (ACT) the largest foreign acquisition in Japanese history.
Instead, after nearly a year of initiatives, negotiations and political maneuver, ACT pulled its offer in mid-July, pointing to a continuous shortage of participation and transparency from the Japanese retail giant, one of the parents of 7-Eleven.
From ACT, the deal is equipped with a “calculated campaign for delay and delay”. Although a fully funded 47.6 % offered, ACT claimed that due to the significant due care and access to the main executives were rejected. Dallas and Tokyo meetings were described as tightly and unbearable textual. He also accused the ACT Seven & I of the necessary information to determine the buyer of abstraction, which is very important to meet American organizational obstacles.
Seven & I, for her part, was “disappointed but not surprised” by ACT decision. Its Board of Directors said that the offer is “less valuable” the company’s capabilities in the long run, describing it “opportunistic timing”, given the efforts of the ongoing restructuring. Seven & I also sparked dangerous concerns to combat monopoly, on the pretext that ACT has failed to detail how possible regulatory demands in the United States, with 7-Eleven 75 % of the group’s revenues.
Behind the scenes, the weight of political and cultural factors may also be significant. The Japanese government has supported seven and I to redress itself as a “basic” company, as any foreign acquisition was exposed to more than 10 % of the distinguished shares of scrutiny. Officials have warned that foreign ownership could offer the possibilities of disasters for which the store network provides decisive support.
Timothy Connor, CEO of Synnovate, who advises Western companies in the Japanese market strategy, presented a blatant evaluation. “For those of us in the field of helping foreign companies enter the Japanese market, the act of seven and your tulle was a classic example of what to do. You must do the home duty and learn the market first, and you need local experience,” he says.
He adds that ACT has never shown real cultural intelligence or how it could be an applicable partner in clarifying how to add value, and misunderstanding the role Konbini (stores) plays in Japan: not only as shops, but as reliable societal centers.
