Couche-Tard Confident in U.S. Approval for Seven & i Buyout Despite Hurdles

Alimentation Couche-Tard remains optimistic about securing U.S. regulatory approval for its proposed acquisition of Japan’s Seven & i Holdings, despite the latter citing antitrust concerns. The Canadian convenience store giant expressed frustration over Seven & i’s limited engagement but confirmed both companies are now working on a plan to divest U.S. stores to ease regulatory barriers.

If successful, the deal would mark Japan’s largest-ever foreign buyout. However, Seven & i’s newly appointed CEO, Stephen Dacus, has reiterated that regulatory challenges remain significant. The two companies dominate the U.S. convenience store market with a combined 20,000 locations.

Couche-Tard, the operator of Circle K, stated it had identified U.S. stores for potential sale and initiated talks with prospective buyers at Seven & i’s request. Despite submitting a revised non-binding proposal in January, Couche-Tard has yet to conduct due diligence, limiting its ability to enhance its bid.

“We remain committed to a friendly transaction despite ongoing frustration,” Couche-Tard stated, reaffirming its persistence. The company has a strong history of acquisitions and plans to finance the buyout through a mix of equity and debt while maintaining its investment-grade credit rating.

Financial backing for the acquisition is supported by letters from Goldman Sachs, Royal Bank of Canada, and Scotiabank. Seven & i has yet to respond to the latest developments.