Canada's Alimentation Couche-Tard is considering how much it could increase its bid to acquire Japan's Seven & i Holdings, according to Bloomberg News on Thursday. The report, which cites unnamed sources familiar with Couche-Tard's internal discussions, reveals that the company is contemplating a significantly higher offer following Seven & i's rejection of its initial $38.5 billion proposal.

Despite this setback, Couche-Tard has expressed its willingness to continue negotiations, although it remains uncertain whether the suitor will submit a new proposal. Couche-Tard has assured that it is confident in securing the necessary financing for the deal, which would mark the largest-ever foreign takeover of a Japanese company.

Meanwhile, Seven & i has enlisted Nomura to advise its board as it prepares for a potential takeover battle with Couche-Tard. In response to the takeover discussions, shares in Seven & i had increased by more than 4 per cent by the end of morning trading on Thursday.

Seven & i had previously stated that the deal might not serve the best interests of its shareholders and could encounter antitrust challenges in the U.S., where the combined entity would become the largest convenience store operator by a significant margin.

Source: Reuters