Casey’s General Stores Inc. has rejected a $43-per-share offer by 7-Eleven and ended talks with the convenience store operator owned by Japan’s Seven & I Holdings, Reuters reported.
Shares of Casey’s dropped 5% after it announced the revised offer did not reflect its full value and growth opportunities.
In early September, 7-Eleven made a non-binding offer to buy Casey’s for $2.03 billion, or $40 per share, challenging Canada’s Alimentation Couche-Tard’s final offer of $38.50 a share. Couche-Tard abandoned its hostile takeover bid for Casey’s on Sept.30, nearly six months after it made its initial offer.
7-Eleven, which operates, franchises or license over 8,200 stores in North America, said in a statement that it believed its revised offer fairly valued Casey’s, which operates more than 1,500 c-stores in the Midwest.
7-Eleven noted it was moving forward with other growth plans and expected to add more than 300 stores this year in the U.S. and Canada.