The purchase by Alimentation Couche-Tard (ACT) of Seven & i Holdings would be the biggest ever foreign takeover of a Japanese firm, valued at around $40 billion.

But last week Seven & i said ACT’s first proposal “grossly undervalues” the company, adding that the “opportunistically timed” offer could face regulatory hurdles.

Couche-Tard said in a statement on Sunday evening that “we remain highly focused on consummating a transaction with 7&i that is in the best interests of all constituencies”.

“We are highly confident that we have sufficient capacity to finance the transaction in cash and that financing would not be a condition to closing a transaction,” it said.

As the world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally.

While the brand began in the United States, it has been wholly owned by Seven & i since 2005.

ACT’s bid was announced in August, and Seven & i later said the company had offered $14.86 per share in cash, roughly matching the Japanese firm’s market value.

“Given the mutual benefits of a combination, we are disappointed in 7&i’s refusal to engage in friendly discussion,” Couche-Tard said.

“We believe that, working together, we can successfully reach and complete a mutually agreeable transaction.”

ACT operates more than 16,700 outlets in 31 countries and territories.

In Japan, 7-Eleven stores are seen as the pinnacle of consumer convenience and excellence in logistics, selling everything from food, concert tickets and bank services.

Seven & i has reportedly asked the Japanese government to designate parts of the company as “core”, which would make a takeover more difficult.