Seven & i says Couche-Tard understates antitrust risk in takeover proposal
The Japanese parent company of 7-Eleven says Alimentation Couche-Tard Inc. is understating the antitrust risk related to its takeover offer for the company.
In a pair of documents, Seven & i Holdings Co. Ltd. says the proposal is a transformational cross-border acquisition involving significant regulatory hurdles unlike other deals done by the Quebec-based convenience store operator.
The Japanese company says it is working with Couche-Tard to evaluate potential divestitures to increase the likelihood of satisfying U.S. antitrust regulators and any potential court challenge.
However, it says it will not enter into a transaction with no clear path to closing that could leave the company in a "value destructive limbo" for multiple years.
"We have been insistent on ensuring a clear path to antitrust regulatory approval as a first step for one reason: a deal that doesn’t close is not a deal, and it will destroy shareholder value," Seven & i said in a statement.
Couche-Tard said earlier this month that it believes there is a clear path to regulatory approval in the U.S. and that it has a successful track record of working with U.S. and other regulators to secure approvals of transactions.
READ: Circle K-owner Couche-Tard undeterred in pursuit to buy 7-Eleven operator: CEO
"We have reiterated several times over the past few months that we intend to be friendly and persistent in pursuing a transaction, which we believe is in the best interest of all stakeholders," Couche-Tard said.
In October, Seven & i said it received a revised non-binding proposal from Couche-Tard that media reports suggested was valued at US$47 billion, about 22% higher than an offer it made in August.
A management buyout proposal for Seven & i by a member of the family that helped found the company collapsed last month after it was unable to secure financing.
