UPDATE: SEVEN & I, COUCHE-TARD SEARCH FOR POTENTIAL BUYERS

Seven & i told its shareholders the search will mitigate U.S. antitrust risk.


After announcing yesterday that Seven & i Holdings and Alimentation Couche-Tard (ACT) were searching for potential buyers for some stores to mitigate U.S. antitrust risk if the Canadian owner of Circle K were to take over the Japanese retailer, ACT said today “it is confident there is a ‘clear path’ to overcome U.S. regulatory hurdles in its proposed $47 billion acquisition of Japan’s Seven & i and expressed frustration at the 7-Eleven owner’s ‘limited engagement,’” reported Reuters. 

“We have reiterated several times over the past few months that we intend to be friendly and persistent in pursuing a transaction,” Couche-Tard said in a statement, rejecting the Japanese firm’s position that the “potentially transformational deal faces major regulatory hurdles.” 

“We have done that in the face of significant frustration and distraction,” it added. 

Couche-Tard said it had been working with Seven & i on a plan to divest some of their stores in the United States if the deal were to go through.

The retailers are two of the largest convenience operators in the U.S.

In a letter yesterday to shareholders, Seven & i wrote that Couche-Tard recently agreed to jointly explore a potential sale of some stores prior to signing a takeover agreement.

Seven & i also said that “now is the right time to advance business initiatives in parallel with its discussion with Couche-Tard and that the company remains focused on identifying all options to improve shareholder value,” wrote the WSJ.

In addition, Seven & i holdings announced that Joe DiPinto is stepping down as a director of the company, although he will remain the CEO of 7-Eleven Inc.

Last week, ACT said it “is in exploratory talks with third parties about a potential sale of U.S. stores to help it gain regulatory approval should it reach a deal to take over Seven & i.”

The Canadian company said it has identified a portfolio of U.S. stores and is in talks to “identify possible acquirers.”

“We believe there is a clear path to obtaining regulatory approvals of a transaction with Seven & i and have made a robust proposal to Seven & i about our commitment to doing so,” a Couche-Tard spokesperson said.

ACT said its top executives will visit Tokyo this week to speak with media about its $47 billion bid to buy Seven & i. Founder Alain Bouchard, CEO Alex Miller and CFO Filipe Da Silva will hold a media briefing on March 13.

Last week, Seven & i also announced that Stephen Hayes Dacus, currently chairman of the board as the lead independent outside director, will succeed Ryuichi Isaka as president and representative director and CEO.

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