The Canadian convenience$ATD (-0.54%) Alimentation Couche-Tard (TSX:ATD) and Seven & i Holdings (PINL:SVNDF) , operator of 7-Eleven stores, have announced the signing of a confidentiality agreement . This agreement grants Couche-Tard access to Seven & i's financial information as part of its efforts to complete a $47 billion acquisition.
After its illustrious history, this non-disclosure agreement marks a significant step forward in the takeover talks that have been ongoing since August. Couche-Tard, known for its Circle K convenience stores in Canada and the US, is seeking to acquire Seven & i to expand its global footprint. The exact terms of the agreement remain confidential, but include a standstill clause to protect Seven & i from hostile takeovers.
If successful, the acquisition would be the largest takeover of a Japanese company by a foreign buyer. Seven & i shares rose 2.7 percent in early trading in Tokyo following the announcement, outperforming the Nikkei index.
Seven & i had previously cited antitrust hurdles in the USA as the main obstacle to the deal. However, the two companies have been working together since March to find buyers for more than 2,000 stores that could be considered for sale.
Seven & i has accelerated the restructuring of its management and operations. This includes the sale of non-core businesses, the appointment of a new CEO and the appointment of four new board members.
Alimentation Couche-Tard Inc. is present in 31 countries and regions with over 16,700 stores, of which approximately 13,100 offer road transportation fuels. With its well-known Couche-Tard and Circle K brands, the company is one of the largest independent convenience store operators in the United States.
Alimentation Couche-Tard Inc (TSX:ATD) opened trading down 1.31 percent at C$71.96 per share and has lost 5.23 percent since this time last year.
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The information in this article is for informational purposes only and does not constitute investment advice. The full disclaimer can be found here .
Photo: Alimentation Couche-Tard Inc.
Source: themarketonline.ca
