Major M&A Proposal Draws FTC Attention
NEW YORK — Seven & i Holdings Co. Ltd. cited potential antitrust challenges among its reasons for turning down Alimentation Couche-Tard Inc.'s nonbinding, $39 billion takeover proposal, but regulators may not be waiting for a deal to move forward before taking an interest.
On Sept. 10, the Federal Trade Commission (FTC) contacted 7-Eleven Inc.'s parent company with a request to preserve all documents that may be relevant to a review of a potential acquisition by Couche-Tard, according to two inside sources who requested anonymity due to not being authorized to speak publicly on the matter.
[Read more: Alimentation Couche-Tard Makes Case for Seven & i Deal]
This signals potential regulatory scrutiny should Couche-Tard return with an offer that Seven & i would be willing to consider, reported Reuters. Both the FTC and Couche-Tard declined to provide comment.
The FTC notified attorneys from both Couche-Tard and Seven & i of their responsibility to advise clients to preserve documents, a source familiar with the FTC's thinking told the news outlet. There is no indication that either company has destroyed any documents thus far, but the FTC is concerned that defense attorneys are advising companies to destroy documents prior to antitrust investigations. Allegations of document destruction took place during recent antitrust cases against Google and Amazon.
On Sept. 6, Seven & i officially rejected the takeover proposal following a unanimous vote by the board of directors, as Convenience Store News previously reported. The company said it is open to engaging in sincere discussions should it receive a proposal that fully recognizes Seven & i's standalone intrinsic value and addresses its concerns regarding the certainty of closing a deal in the current regulatory environment.
Soon after, Couche-Tard reiterated its belief that an acquisition of Seven & i could overcome regulatory hurdles and create more success for both companies together than either could apart, but did not make any changes to its proposal.
7-Eleven Inc. is No. 1 on the 2024 Convenience Store News Top 100 report. Alimentation Couche-Tard is the No. 2 retailer on the ranking.