Potential buyers of Japan's Seven & i and Canada’s Alimentation Couche-Tard's U.S. stores have until the end of March to express interest and address antitrust concerns, according to Bloomberg News.
Several interested parties are currently engaged in the process and have signed non-disclosure agreements. However, none of the potential buyers have been named.
Couche-Tard, which operates Circle-K convenience stores in Canada and the United States, has been seeking to acquire Seven & i since August. Last week, the Canadian company made a buyout offer of $47 billion, contingent on Seven & i becoming more cooperative and disclosing additional financial information.
The deal has encountered challenges, with Seven & i citing U.S. competition law as a barrier to the transaction.
The two companies are leading players in the U.S. convenience store market, collectively operating about 20,000 locations. Seven & i indicated that over 2,000 stores could be divested, though Couche-Tard has not disclosed a specific number.
Couche-Tard has not immediately responded to requests for comments. A Seven & i spokesperson confirmed that the company has signed non-disclosure agreements with potential buyers and continues to engage with Couche-Tard regarding antitrust issues.
Any initial expressions of interest must ensure the protection of competition in the U.S. market, as reported by Bloomberg. Additionally, Seven & i, which has faced investor criticism over its capital allocation for years, stated this month that discussions with Couche-Tard concerning a store sale plan are underway, potentially paving the way for the takeover bid.
Separately, Couche-Tard mentioned that it is in discussions with third parties about the potential sale of its U.S. stores to facilitate regulatory approval.