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(Bloomberg) -- Canada’s convenience store and gas station operator Alimentation Couche-Tard Inc. says it has held “exploratory discussions” with buyers for any US stores that would need to be divested to secure regulatory approval for a potential takeover of Japanese rival Seven & i Holdings Co.
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Couche-Tard executives, including founder and chairman Alain Bouchard, will visit Tokyo next week to try and advance discussions with Seven & i, and are also planning to hold a news conference on March 13 to publicly present their case for buying the company behind 7-Eleven stores.
“We have identified a potential divestiture portfolio of US stores,” Couche-Tard said in an emailed statement. “In collaboration with Seven & i, and to provide further assurance, Couche-Tard is having exploratory discussions with third parties to identify potential acquirers.”
Couche-Tard last year proposed to purchase the parent company of 7-Eleven for $18.19 per share, but so far hasn’t been able to enter negotiations with the company, which has sought to fend off the approach by pursuing a sweeping overhaul to unlock shareholder value. Seven & i has yet to convince investors, with the stock trading more than 20% below Couche-Tard’s proposed price of $47.5 billion for the business.
Seven & i announced this week that it plans to sell an underperforming retail business and replace its chief executive, as well as a buy back of shares worth ¥2 trillion ($13.6 billion) over the next few years, to strengthen its case for remaining independent.
Couche-Tard’s reaction to the flurry of changes reflects the resolute approach that has seen it outlast a rival takeover bid from Seven & i’s founding family, which collapsed last month over lack of funding. The Canadian company has made clear that it wants to learn from the Japanese brand to improve its North America operation, and has ruled out going hostile in takeover talks.
Bouchard, as well as CEO Alex Miller and Chief Financial Officer Filipe Da Silva, will attend the news conference in Tokyo, scheduled for 11 a.m. on Thursday, the company said.
Stephen Dacus, the board member leading the special committee evaluating the Couche-Tard offer, will take over Ryuichi Isaka as Seven & i CEO in May. The stock was mostly unchanged in Tokyo following the announcement of the restructuring measures, and is down about 15% this year.