Seven & i Holdings, owner of 7-Eleven, has rejected a $38.6 billion takeover bid from Canadian convenience store operator Alimentation Couche-Tard. The company believes the offer “grossly undervalues” its business and future growth potential.

Stephen Dacus, chair of the special committee evaluating the bid, argued that the proposal was “opportunistically timed” and failed to address major regulatory challenges, including potential divestitures to satisfy U.S. antitrust agencies. Seven & i recently announced a restructuring plan aimed at global expansion of 7-Eleven and divesting underperforming businesses.

Despite rejecting the bid, Seven & i remains open to proposals that genuinely benefit shareholders, though it will resist offers that undermine the company’s value.

Portfolio managers are divided on the issue. Ben Herrick from Artisan Partners, a stakeholder in Seven & i, supports the acquisition but criticizes the company’s slow pace of reform. Meanwhile, Richard Kaye of Comgest opposes a foreign takeover, praising Seven & i’s strong logistics and innovation.