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4w ago

Seven & i Challenges Couche-Tard's $50 Billion Merger Bid Over Antitrust Concerns

The Japanese 7-Eleven parent demands regulatory clarity before proceeding, citing unprecedented divestiture requirements and heightened U.S. scrutiny.

People shop at a 7-Eleven convenience store in New York, March 19, 2024.
Image
A Couche-Tard convenience store is seen in Montreal, Thursday, Sept. 5, 2024.Alimentation Couche-Tard Inc. says it's "disappointed" in what they say is the Japanese owner of 7-Eleven's refusal to engage in discussions following its rejection of a takeover offer last week. THE CANADIAN PRESS/Christinne Muschi

Overview

  • Seven & i Holdings accuses Couche-Tard of downplaying the antitrust risks of their proposed $50 billion merger, emphasizing the need for regulatory certainty.
  • The Japanese retailer highlights the unprecedented scale and complexity of divestitures required to address U.S. Federal Trade Commission concerns, estimated at 2,000 stores.
  • Seven & i insists on resolving regulatory issues before finalizing any deal, warning against entering a 'value-destructive limbo' similar to the failed Kroger-Albertsons merger.
  • Couche-Tard maintains confidence in securing U.S. regulatory approval, citing its track record with past transactions, though Seven & i argues this deal is far more complex.
  • Both companies are collaborating with investment bankers to identify potential buyers for divested stores, but tensions persist over Couche-Tard's negotiation practices.