Alimentation Couche-Tard (TSX: ATD) has unveiled its strategy to push the deal with Seven & i Holdings by preparing to sell off a key portfolio of assets. The retail giant reaffirmed its long-held conviction that a merger with the Japanese giant would be strategic and financial value for both companies and their stakeholders.
“We have deep respect for 7&i and the business it has built,” Couche-Tard said. The firm’s revised, yen-denominated non-binding proposal—submitted on January 24, 2025—shows the company’s unwavering interest in the iconic 7-Eleven brand.
Recognizing that the highly fragmented US convenience store market poses significant challenges and regulatory challenges, Couche-Tard has proactively committed to divesting a specific base number of stores. This is designed to address antitrust concerns, as reflected in the company’s proposal featuring a substantial reverse termination fee.
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“We shared a detailed proposal with 7&i outlining the firm commitments we would be willing to make with respect to U.S. regulatory approvals,” the statement added.
With fully committed financing already in place—supported by confidence letters from Goldman Sachs, Royal Bank of Canada, and Scotiabank—the company said it is poised to execute the transaction that will maintain its strong investment-grade credit ratings while investing in both its own operations and those of 7&i.
To sweeten the deal, Couche-Tard manifested its commitment to preserve and enhance operations in Japan, where the 7-Eleven brand is a household name.
“We would strongly welcome the opportunity to engage with the Ito family to learn more about the business they have built and nurtured,” the firm added.
After more than six months of dialogue and persistent efforts, 7&i recently consented for Couche-Tard to begin engaging potential buyers for the stores designated for divestiture—which many see an optimistic sign for the deal to push through.
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