The yen’s rapid appreciation in the past month poses a new hurdle for Alimentation Couche-Tard’s takeover proposal for Japan’s Seven & I Holdings.
A takeover by the Canadian supermarket chain would be the largest foreign takeover of a Japanese company ever, based on Seven & I’s current market capitalization. But questions have already been raised about potential financing and the takeover candidate’s efforts to secure government protection.
The yen has risen about 11% since bottoming out against both the dollar and its Canadian counterpart in early July. Currency strategists expect the rally to continue in the coming months as the interest rate differential between Japan and other countries narrows, making Seven & I increasingly expensive for the foreign suitor.
