Seven & i Weighs Store Sales to Address Antitrust Concerns in Couche-Tard Merger Talks

Seven & i Holdings (TYO:3382) revealed on Monday that Canadian retailer Alimentation Couche-Tard (TSE:ATD) is evaluating a proposal to sell a group of stores to address antitrust concerns over their potential $47 billion merger.

In an open letter to shareholders, Seven & i stated it remains engaged in discussions with Couche-Tard, particularly after a key shareholder urged the company to seriously consider the offer. The two firms are now working with financial advisors to assess store divestitures that could help ease regulatory hurdles, though no definitive agreement has been signed yet.

The divestiture discussions come amid heightened antitrust scrutiny, which poses a major challenge to the merger. Seven & i and Couche-Tard are actively seeking buyers for stores that may need to be sold if a deal moves forward.

This renewed engagement follows the collapse of a $55 billion buyout bid led by the Ito founding family in February due to financing difficulties. Initially, Seven & i had dismissed Couche-Tard’s proposal but later reopened talks under shareholder pressure to unlock greater corporate value.

Hedge fund Artisan Partners (NYSE:APAM), a key investor, has also pushed for deeper negotiations with Couche-Tard. In a letter on Sunday, the firm urged Seven & i to prioritize maximizing shareholder returns by seriously evaluating the merger offer.

As discussions continue, market watchers anticipate further developments, particularly regarding regulatory approvals and the potential sale of assets to facilitate the deal.