Canada's Alimentation Couche-Tard said it is having exploratory talks with third parties about a potential sale of US stores, which would help it gain regulatory approval should it reach a deal to take over Japan's Seven & i Holdings.
The Circle-K operator, which has made a $47 billion bid to acquire the 7-Eleven convenience store operator, said it has identified a portfolio of US stores and is in talks to 'identify possible acquirers'.
"We believe there is a clear path to obtaining regulatory approvals of a transaction with 7&i and have made a robust proposal to 7&i about our commitment to doing so," a Couche-Tard spokesperson said.
US Antitrust Law
Seven & i has opposed the bid and maintains that US antitrust law would be a major barrier to a deal. The companies are the top two players in the US convenience store market, with about 20,000 shops between them.
Seven & i appointed its first foreign CEO and handed him the task of overhauling its business to fend off the bid.
Incoming chief executive Stephen Dacus said he had spoken with Couche-Tard that day and that talks would continue, but significant regulatory hurdles stood in the way of any merger, particularly in the United States.
Seven & i, which has more than 80,000 7-Eleven stores in 20 countries and regions, has agreed to sell its superstore unit to Bain Capital for 814.7 billion yen ($5.50 billion) and that it would sell down its ownership of Seven Bank to below 40%.
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