Seven & i Holdings’ shares slide on likely U.S. probe into a potential M&A deal with Couche-Tard

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Seven & i Holdings’ shares slide on likely U.S. probe into a potential M&A deal with Couche-*****

A 7-Eleven convenience store, operated by Seven & i Holdings Co., in Kawasaki, Japan, on Monday, Aug. 19, 2024. 

Bloomberg | Bloomberg | Getty Images

Shares of Seven & i Holdings fell on Wednesday

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that the U.S. Federal Trade Commission has informed the ********* retail giant about a potential investigation into a possible deal with Canada’s Alimentation Couche-*****.

Shares of Seven & i fell 2.89% during Asia trading hours. Couche-*****’s shares closed 1.39% lower on Tuesday. 

U.S. antitrust authorities have asked Seven & i, which owns 7-Eleven, to retain all relevant documents for a review,

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citing sources familiar with the matter. Couche-***** last month made a $38.5 billion bid for the ********* retail company.

The FTC was concerned that the companies’ defense attorneys were advising them to get rid of documents linked to the potential merger ahead of antitrust investigations, Reuters reported. There is no official notifications of a probe yet.

In June, the FTC and the Justice Department launched antitrust investigations into

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, OpenAI and Nvidia. Other recent antitrust investigations include cases against

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and

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.

Last week, the owner of 7-Eleven rejected a cash takeover bid from the ********* convenience store operator, claiming that the offer was “not in the best interest” of its shareholders and stakeholders, and cited U.S. antitrust concerns.

Seven & i revealed that Couche-***** had offered to acquire all outstanding shares of Seven & i for $14.86 per share. Should the deal go through, it could mark the biggest-ever foreign takeover of a ********* company.

“From a conventional perspective, I do not see the approvals from a national security perspective in Japan would be a big impediment, but there are voices in the market that speak about Seven & i’s importance, even as a safeguard during natural disasters,” said Tokutaka Ito, partner at A&O Shearman, a law firm specializing in M&A.

“If such voices are enlarged, then the government may take a more ************* approach,” Ito told CNBC on Wednesday. 

Neither Seven & i nor Couche-***** immediately responded to requests for comments.

—CNBC’s Lim Hui Jie contributed to this report.

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#Holdings #shares #slide #U.S #probe #potential #deal #CoucheTard

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