Alimentation Couche-Tard, based in Canada, has initiated exploratory discussions with various third parties regarding a potential divestiture of its U.S. stores. This strategic move aims to secure regulatory approval in the event it successfully negotiates a takeover of Japan’s Seven & i Holdings.
A spokesperson from Couche-Tard expressed confidence in their approach, stating that the company sees a viable route to attain regulatory consents for a deal with 7&i and have proposed a solid plan demonstrating our dedication to achieving this.
Couche-Tard has made an ambitious $47 billion offer for Seven & i Holdings, the operator of the 7-Eleven convenience store empire. In an effort to resist this bid, Seven & i recently appointed Stephen Dacus, its first international CEO, tasking him with revitalizing the company. Dacus noted that discussions with Couche-Tard, the owner of Circle K, are ongoing, yet acknowledged the considerable regulatory challenges that may hinder a merger of these entities.
Achieving this deal would allow Couche-Tard to extend its global footprint and realize enhanced economies of scale. However, analysts highlight that the proposal is likely to undergo stringent scrutiny within the U.S., especially in light of the Federal Trade Commission having blocked a $25 billion merger attempt between Kroger and the smaller Albertsons in 2022, citing antitrust concerns.
Michael Ashley Schulman, the chief investment officer at Running Point Capital, said that the deal may encounter resistance from Japanese authorities as it would mark the largest foreign acquisition of a Japanese conglomerate, as well as from the U.S. Federal Trade Commission.
