STORY: 7-Eleven could be getting closer to a takeover.
Japanese owner Seven & i said Monday it has begun talks with Canada’s Alimentation Couche-Tard over a store sale plan.
That may set the stage for a $47 billion takeover by the Circle-K operator.
Seven & i has previously said that U.S. antitrust law would be a barrier to any agreement, as the two companies combined would dominate the convenience store market there.
They would have about 20,000 outlets in the United States.
In a letter to shareholders, Seven & i proposed examining how divesting stores could address that, and what buyers might be interested.
Last week, Couche-Tard said it had already begun talks with third parties about such a sale.
It says it has identified a portfolio of U.S. stores that could be offloaded.
Last week also saw Seven & I name outside director Stephen Dacus as its new CEO – the first foreigner to hold that post at the Japanese firm.
He’s been tasked with leading its recovery and responding to the takeover offer.
At a news conference on Friday, he said investors needed a quick decision:
“What I do not think our shareholders would want is for us to spend two-plus years in limbo just for that to be rejected by the U.S. courts. That would not help shareholder value. That would not help shareholder value. It would not help our business. It absolutely would not add to our company’s value.”
U.S. investor Artisan Partners – which holds a big stake in the Japanese firm – on Sunday urged Seven & I to look again at the Couche-Tard offer.
This week, executives from the Canadian firm are expected to visit Tokyo to talk to the media about their bid.
