Seven & i Holdings & Couche-Tard Take Another Step Toward Possible Deal
TOKYO, & LAVAL, Quebec — Seven & i Holdings Co. Ltd., parent company to 7-Eleven Inc., and Alimentation Couche-Tard Inc. (ACT) are moving closer to a potential deal by signing a non-disclosure agreement (NDA) that includes customary and appropriate provisions, including a "standstill," the detailed terms of which will remain confidential.
The NDA will facilitate information-sharing beyond the information already being provided to potential divestiture package buyers, Seven & i stated.
[Read more: Seven & i Holdings Charts a Path Forward]
"The execution of the NDA is a positive step in the constructive engagement process with ACT," said Paul Yonamine, chair of the special committee created to evaluate an acquisition.
He noted that Seven & i is committed to pursuing two parallel paths to ensure maximum value for shareholders and other stakeholders: working closely with Couche-Tard to explore the possibility of a viable divestiture path to ensure that any potential agreed-upon sale can be completed; and a standalone plan, for which having well-defined management initiatives and the newly appointed Stephen Hayes Dacus as CEO will be key to the company's success.
"Nothing has changed in that regard. As we have said previously, we caution that it remains the case that it is critical for the [special committee] to assess if there is a path to a viable divestiture by identifying potential buyers and determining their ability to stand up a real, stand-alone business that will preserve competition and satisfy regulators," Yonamine said. "That work is ongoing."
Unlocking significant value for shareholders and stakeholders remains Seven & i's top priority, he added.
In March, Seven & i and Couche-Tard set an end-of-the-month deadline for potential buyers of the companies' U.S. convenience stores to express their interest and address antitrust concerns, as Convenience Store News previously reported. Potential buyers have reportedly already entered talks and signed NDAs.
Seven & i has repeatedly emphasized its concern regarding regulatory hurdles in the United States. It estimated that more than 2,000 stores could be divested in the event of a merger, while Couche-Tard has not provided a divestiture target.
Seven & i subsidiary 7-Eleven Inc. operates, franchises and/or licenses more than 13,000 stores in the United States and Canada. In addition to 7-Eleven stores, it operates and franchises Speedway, Stripes, Laredo Taco Co., and Raise the Roost Chicken and Biscuits locations.
Laval-based Alimentation Couche-Tard operates in 31 countries and territories, with more than 16,800 stores, of which approximately 13,000 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, Belgium, as well as in Ireland.