Alimentation Couche-Tard is pressing forward with its bid to acquire 7-Eleven’s Japanese parent, despite a competing offer from a member of the company’s founding Ito family, says the Canadian company’s top executive.

The Ito family has voiced plans to take Seven & i Holdings private.

“We will be persistent and continue our friendly approach to creating what we see as the most compelling outcome for all shareholders, employees and key constituencies of both companies,” said Couche-Tard CEO Alex Miller during a call with analysts to discuss the company’s latest quarterly results.

Montreal-based Couche-Tard, the owner of the Circle K convenience store chain and other convenience stores bearing different brands including its own, has tabled an offer of approximately US$47 billion to acquire Seven & i, which operates the global network of 7-Eleven stores. The proposed merger is seen by Couche-Tard as an opportunity to expand its fresh food offerings and strengthen its position in the fragmented convenience retail industry, particularly in the U.S.

“We continue to see a strong opportunity to grow together,” Miller said. “We also remain confident in our ability to finance and complete this combination.”

However, resistance has come from within Seven & i. The Ito family, which holds about 8%, is opposing the proposed deal. Junro Ito, a Seven & i vice-president and director, has submitted a competing management buyout proposal valued at roughly 9 trillion yen (US$58.7 billion), according to Bloomberg.

A special committee of Seven & i directors is reviewing both Couche-Tard’s offer and Ito’s non-binding proposal. The late Masatoshi Ito, Junro Ito’s father, founded the retail empire, which includes the 7-Eleven chain as well as a bank, insurance units, and credit-card businesses.

Couche-Tard has indicated it is prepared to play the long game. Company executives have told Japanese media that they believe their offer is attractive, and they do not plan to pursue a hostile takeover, which would involve courting Seven & i shareholders or vying for board seats.

Couche-Tard’s bid ranks as the largest-ever offer from a non-Japanese company for a Japanese target, according to multiple reports.

Junro Ito’s proposal is backed by trading and investment giant Itochu, which owns FamilyMart, Japan’s second-largest convenience store chain behind 7-Eleven. Reports also indicate that three of Japan’s largest banks are supporting Ito’s offer.

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