The U.S. Federal Trade Commission (FTC) has notified Japan’s Seven & i Holdings (OTCMKTS: SVNDY), the parent company of the 7-Eleven chain, that it plans to investigate potential antitrust concerns related to the unsolicited acquisition bid by Canada’s Alimentation Couche-Tard Inc. (ACT) (TSX:ACT) that could have created one of the world’s largest retail networks.
According to a Reuters report based on input from a “source familiar with the matter,” the FTC alerted Seven & i of its plans after ACT’s offer was made public on Aug. 19. The FTC has not publicly commented on the report.
Seven & i operates more than 85,000 stores with different brands across US and Asia, including the Speedway and Stripes convenience stores along with 7-Eleven. ACT operates more than 16,000 Couche-Tard and Circle K stores across North America and Europe.
Seven & i Holdings Chairman Stephen Dacus rejected the bid, stating the proposed acquisition was “opportunistically timed and grossly undervalues our standalone path and the additional actionable avenues we see to realize and unlock shareholder value in the near- to medium-term.”
Photo: LoopNet
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