A Couche-Tard convenience store is seen in Montreal, Quebec, Canada January 13, 2021. REUTERS
March 7 (Reuters) – Canada’s Alimentation Couche-Tard (ATD.TO), said it is having exploratory talks with third parties about a potential sale of U.S. stores, which would help it gain regulatory approval should it reach a deal to take over Japan’s Seven & i Holdings.
The Circle-K operator, which has made a $47 billion bid to acquire the 7-Eleven convenience store operator, 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 7&i and have made a robust proposal to 7&i about our commitment to doing so,” a Couche-Tard spokesperson said.
Seven & i has opposed the bid and maintains that U.S. antitrust law would be a major barrier to a deal. The companies are the top two players in the U.S. convenience store market, with about 20,000 shops between them.
Seven & i appointed its first foreign CEO and handed him the task of overhauling its business to fend off the bid.
Incoming chief executive Stephen Dacus said he had spoken with Couche-Tard that day and that talks would continue, but significant regulatory hurdles stood in the way of any merger, particularly in the United States.
Reporting by Abigail Summerville; Writing by Rocky Swift; Editing by Edwina Gibbs
