Seven & i says Couche-Tard considering store sale proposal for takeover

Investing.com--Seven & i said on Monday that Canada’s Alimentation Couche-Tard was considering a proposal from the Japanese retailer to sell a group of its stores to help ease antitrust concerns over a potential merger. 

Seven & i said in an open letter to shareholders that it was continuing to engage with Couche-Tard over a $47 billion takeover bid from the Canadian firm, especially after a major shareholder pressured the Japanese firm to consider the offer. 

Seven & i said it and Couche-Tard were now engaging with their respective financial advisors to map out the viability of store divestitures that could soothe antitrust concerns, although they had not yet signed any definitive agreement. The two were seeking buyers for a package of stores that are likely to be divested in the event of a merger deal being signed. 

Seven & i’s re engagement with Couche-Tard comes after a $55 billion bid to take the Japanese firm private, led by the Ito founding family, largely fell apart in February due to an inability to secure funds.

Seven & i had initially Couche-Tard’s bid, but had then re engaged with the retailer amid pressure from shareholders to unlock more value. But any merger between the two will draw high levels of antitrust scrutiny, which in turn highlights the need for their divestiture discussions. 

Hedge fund Artisan Partners (NYSE:APAM) on Sunday sent a letter to Seven & i, calling on the Japanese retailer to more deeply engage with Couche-Tard in order to “maximize corporate value.” 

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