Alimentation Couche-Tard’s takeover proposal for Seven & I Holdings in Japan is facing a new challenge with the recent surge in the yen’s value. This increase in the currency’s strength could impact the potential funding and overall feasibility of the acquisition, which is already under scrutiny.
The Canadian convenience store operator’s bid for Seven & I would mark a significant milestone as the largest foreign acquisition of a Japanese company based on market capitalization. However, the yen’s rapid appreciation, climbing 11% in a month, could make the deal more costly for Alimentation Couche-Tard.
Experts believe that the yen’s rally is likely to continue as Japan’s interest rate gap diminishes compared to other economies. This could further complicate the financial aspects of the takeover and potentially make Seven & I a less attractive target for the foreign investor.
[ad_2]
Source link
