Couche-Tard understates antitrust risk in takeover proposal, 7-Eleven owner says – Montreal [Video]

The Japanese parent company of 7-Eleven says Alimentation Couche-Tard Inc. is understating the antitrust risk related to its takeover offer for the company.

In a pair of documents, Seven & i Holdings Co. Ltd. says the proposal is a transformational cross-border acquisition involving significant regulatory hurdles unlike other deals done by the Quebec-based convenience store operator.

The Japanese company says it is working with Couche-Tard to evaluate potential divestitures to increase the likelihood of satisfying U.S. antitrust regulators and any potential court challenge.

However, it says it will not enter into a transaction with no clear path to closing that could leave the company in a “value destructive limbo” for multiple years.

“We have been insistent on ensuring a clear path to antitrust regulatory approval as a first step for one reason: a deal that doesn’t close is not a deal, and it will destroy shareholder value,” Seven & i said in a statement.