Seven & I Holdings, the Tokyo-based operator of 7-Eleven, has turned down a $38.5 billion offer from Canadian company Alimentation Couche-Tard, which owns Circle K.

The offer proposed acquiring all outstanding shares of Seven & I at $14.86 per share in cash, but the company felt the bid undervalued its global business. Additionally, Seven & I expressed concerns about significant regulatory hurdles, particularly with U.S. antitrust laws.

The company is open to considering proposals that better align with shareholder interests but remains firm in protecting its intrinsic value. The potential merger would have been one of the largest cross-border takeovers this year, expanding Couche-Tard’s reach across North America and Europe.