US set to probe any Couche-Tard takeover of 7-11 owner: sources

STORY: U.S. watchdogs have warned that they are likely to probe any takeover of the 7-Eleven parent firm.

That’s according to two Reuters sources.

Canadian retailer Alimentation Couche-Tard has seen a $38.5 billion bid rejected by Japan’s Seven & i.

But it’s expressed determination to press on.

However, Seven & i has already said it expected any takeover to run into antitrust concerns.

That appears well founded, with the sources saying the U.S. Federal Trade Commission has written to the firm, serving notice of a likely probe.

It has asked the company to preserve all relevant documents in case of an inquiry.

There was no comment on the report from the watchdog, or either of the companies.

Speaking to Reuters, Suntory boss and Japan business lobby chair Takeshi Niinami - who previously ran 7-Eleven rival Lawson - said the bid’s rejection was no knee-jerk move:

“Obviously, the thinking and image of Japanese corporates - that means always ‘no’ to the challenge from overseas investors - but this time, Seven & i responded saying that the price is too low. Then, if the price is high enough, that means Seven & i would accept.”

Under Chair Lina Khan, the FTC has been aggressive in examining deals for antitrust issues.

A bid by grocery chain Kroger to acquire rival Albertsons failed over such concerns.

Now a combination of 7-Eleven stores with Couche-Tard’s Circle K brand could give the merged firm a strong position in the U.S.

Together, they’d account for close to a fifth of the convenience store market there.

Couche-Tard has said it could address any concerns over that by divesting some assets.