Shares of Seven & i Holdings (TYO:3382) closed over 9% lower on Thursday after Canada's Alimentation Couche-Tard withdrew its proposal to acquire the Japanese retail company due to "a lack of constructive engagement".

Both parties entered into a non-disclosure agreement in April, after ACT increased its offer to around $47 billion in March. ACT even offered to raise the amount further if 7&i cooperated and shared more financial data.

Moreover, ACT proposed to acquire 100% of 7&i's business outside Japan and 40% of the Japan business ParentCo.

However, the Japanese firm did not provide "sincere or constructive engagement" to advance the proposal. Both parties held meetings in Tokyo and in Dallas, Texas, USA, but these revealed little new information, ACT said in its letter to 7&i's board of directors published Wednesday.

The company, which owns the 7-Eleven convenience store chain, expressed disappointment over ACT's decision in a Thursday press release, saying the company disagrees with their "numerous mischaracterizations".

"The Special Committee consistently engaged in good faith and constructively with ACT to explore the possibility of reaching a deal that could be consummated and that would benefit our shareholders," 7&i said.

In the wake of the withdrawal, 7&i offered a share buyback of 2 trillion Japanese yen to its shareholders by the end of 2023. The company also announced plans to launch an initial public offering of its North American convenience store business.

Shunsuke Kuriyama, an equity analyst for international investment bank Jefferies, said the buyback "will support the share price", with the market focusing more on the recovery of 7&i's operations in 7-Eleven and its group.