Canada’s convenience store and gas station operator Alimentation Couche-Tard Inc. is holding exploratory discussions with potential buyers for its underperforming US stores in order to secure regulatory approval for a potential takeover of Japanese rival Seven & i Holdings Co.
Couche-Tard executives, including founder and chairman Alain Bouchard, will visit Tokyo next week to advance discussions with Seven & i, and plan to hold a news conference on March 13 to publicly present their case for buying the company behind 7-Eleven stores. The company has proposed to purchase Seven & i for $18.19 per share last year but was unable to enter negotiations.
Seven & i has sought to fend off the approach by pursuing a sweeping overhaul, including selling an underperforming retail business and replacing its CEO. Couche-Tard has made clear that it wants to learn from the Japanese brand to improve its North America operation, and has ruled out going hostile in takeover talks.
The company’s reaction reflects the resolute approach seen in its previous attempt at acquiring Seven & i, which collapsed last month over lack of funding. Couche-Tard believes there is a “clear path” to obtaining regulatory approvals for a transaction, but faces significant antitrust challenges in the US.
A potential acquisition by Couche-Tard would likely face an antitrust review by US regulators and force the retailer to divest as many as 2,500 stores. The company has recently registered to open a Japan entity and will operate a small office to work on the potential acquisition.
Source: https://finance.yahoo.com/news/couche-tard-holds-talks-sale-011634495.html