From Yahoo Finance: 2025-04-01 06:01:00

Convenience store giants Couche-Tard and Seven & i are divesting thousands of stores to ease regulatory concerns for a potential merger. They face challenges attracting buyers, as antitrust experts warn against private equity firms. The U.S. FTC prefers strategic buyers for divested stores. The companies aim to sell over 2,000 stores.

The fallout from the failed Kroger-Albertsons deal led to Couche-Tard and Seven & i scaling back their merger plans. Seven & i received a warning from the FTC before a deal was even signed. The FTC rejected C&S Wholesale Grocers as a credible buyer for divested stores. The companies are cautious about potential regulatory challenges.

Seven & i, owner of 7-Eleven, has resisted Couche-Tard’s takeover attempts since August. The failed $25 billion Kroger-Albertsons merger serves as a cautionary tale. The companies aim to preemptively address antitrust concerns through early regulatory work. A combined company would dominate the U.S. convenience store market.

Experts suggest the collapse of the Kroger-Albertsons deal offers a roadmap for future retail mergers. Couche-Tard and Seven & i’s proactive approach may help gain regulatory approval. The companies aim to avoid regulatory pitfalls by engaging with regulators early. Their strategic divestiture plan aims to address potential antitrust concerns.

Read more: Analysis-Couche-Tard, 7-Eleven face early hurdle on store divestiture plan