Canadian convenience store giant Alimentation Couche-Tard has announced it is withdrawing its takeover proposal for Japan’s retail conglomerate Seven & i Holdings.  

The two companies had been in talks since last year, when Couche-Tard submitted a massive acquisition offer worth around 7 trillion yen (approximately US$47 billion) . 

But in a newly released letter addressed to Seven & i’s board of directors, Couche-Tard said it is pulling out of the deal.  

The company criticized Seven & i, saying it had shown “no sincere or constructive intent” to advance the talks, and expressed “strong concerns over its governance structure.”  

In response, Seven & i expressed disappointment over Couche-Tard’s decision, claiming it had engaged in “sincere and constructive discussions” in pursuit of an agreement.  

The Japanese retailer also said it will continue efforts to enhance its corporate value independently, including potential plans to publicly list its North American convenience store business.