The logo of Seven & I Holdings is seen at its headquarters in Tokyo, Japan December 6, 2017. REUTERS
TOKYO, March 10 (Reuters) – Japan’s Seven & i Holdings (3382.T), said on Monday that talks have begun with Canada’s Alimentation Couche-Tard (ACT) over a store sale plan that would set the stage for ACT’s $47 billion takeover bid.
Last week, the 7-Eleven convenience store operator named Stephen Dacus as its new CEO to lead a recovery and respond to the takeover offer from Couche-Tard (ATD.TO).
Seven & i has said U.S. antitrust law would be a barrier to any deal. The companies are the top two players in the U.S. convenience store market, with about 20,000 locations between them.
In a letter to shareholders on Monday, Seven & i said it proposed that the two companies could map out the viability of a divestiture process and identify potential buyers.
Couche-Tard had said last week that it is engaged in exploratory talks with third parties about a potential sale of U.S. stores, which would help it gain regulatory approval.
It said it had identified a portfolio of U.S. stores and was in talks to “identify possible acquirers”.
Couche-Tard “recently agreed” to the proposal to explore the viability of divestitures that would allow for an assessment of the Canadian company’s buyout offer, Seven & i said on Monday.
Separately, Seven & i said Joseph Michael DePinto stepped down as a director of the holding company while remaining the chief executive of 7-Eleven Inc.
Top executives from Couche-Tard are due to visit Tokyo this week to speak with media about their takeover bid.
Artisan Partners (APAM.N), a U.S.-based investor in Seven & i Holdings, said on Sunday it opposed the Japanese retailer’s CEO succession plan and urged the company to reconsider Couche-Tard’s takeover offer.
Reporting by Rocky Swift and Anton Bridge; Editing by Stephen Coates
