Couche-Tard says it now sees ‘clear path’ to Seven & i deal

Alimentation Couche-Tard in its ongoing bid to Seven & i Holdings, the parent company of 7-Eleven, says it’s now seeing a ‘clear path’ forward to getting to regulatory approval in the U.S for this massive deal. 

Last year and into this year, Couche-Tard made an offer to acquire Seven & i, initially valued at US$38.6 billion. It was turned down by Seven & i over concerns about undervaluation and various regulatory hurdles involved in such a transaction. Later, Couche-Tard increased its bid to US$47 billion and then entered into a confidentiality agreement with Seven & i to gain access the company’s financials in order move the bid forward, especially around ongoing antitrust issues in the U.S., where Couche-Tard may need to divest of some 2,000 or more stores.

On Couche-Tard’s website, the company says the “U.S. convenience store industry is highly fragmented, with over 150,000 stores nationally. Both Couche-Tard's and Seven & i's stores operate in the U.S. in competition with a wide array of brick and mortar and online food and merchandise providers." 

"Additionally, Seven & i and Couche-Tard largely operate in complementary geographies across the U.S. The joint work we are undertaking in collaboration with Seven & i and its external counsel with respect to outlining the divestiture portfolio and assessing potential buyer interest has confirmed this view. We believe there is a path to divesting a portfolio of stores that will be a viable, strong competitor in the U.S. convenience space, satisfying antitrust requirements, and we look forward to further engaging with the FTC and other agencies at the appropriate time.”

READ:  Couche-Tard signs non-disclosure agreement with Seven & i amid takeover discussions