Seven & i in Discussions with Couche-Tard to Facilitate $47B Takeover

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Japan's Seven & i Holdings announced on Monday that discussions have begun with Canada’s Alimentation Couche-Tard (ACT) regarding a store sale plan, which would pave the way for the latter’s $47 billion takeover bid.

Last week, Seven & i appointed Stephen Dacus as its new CEO to lead the company’s recovery and address Couche-Tard's acquisition offer. Seven & i has previously stated that U.S. antitrust laws could pose a challenge to any potential deal, as the two companies dominate the U.S. convenience store market, operating approximately 20,000 locations combined.

In a letter to shareholders, Seven & i proposed that both companies explore the feasibility of a divestiture process and identify possible buyers to move the deal forward.

Seven & i also stated that Couche-Tard had "recently agreed" to this proposal, allowing for an evaluation of the Canadian company’s buyout offer.

Additionally, Seven & i announced that Joseph Michael DePinto had resigned as a director of the holding company, though he will continue to serve as CEO of 7-Eleven Inc.

Executives from Couche-Tard are scheduled to visit Tokyo this week to meet with the media about their takeover bid.

Meanwhile, Artisan Partners, a U.S.-based investor in Seven & i Holdings, voiced its opposition to the CEO succession plan and urged the company to reconsider the Couche-Tard acquisition offer.

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author