NEW YORK, Sept 10 (Askume) – U.S. anti-competition regulators told Seven & I (3382.T) that they are investigating Canada’s Alimentation Couche-Tard.(ATD.TO) , two people familiar with the matter said, an early sign that the merger could face regulatory scrutiny.
The US Federal Trade Commission notified Seven & IA of its intention to acquire the Japanese retail giant after Couche-Tard’s $38.5 billion offer to acquire the Japanese retail giant became public on August 19, the sources said . He requested to remain anonymous as he was not authorized to speak publicly on the matter.
The FTC contacted the company and asked it to preserve any documents relevant to its review of a potential Couche-Tard acquisition, sources said.
The Federal Trade Commission declined to comment. Kush-Ted also declined to comment.
Seven and MeSome rejected Kush-Ted’s approach, citing US antitrust concerns .
Seven & i’s operations include the 7-Eleven convenience store chain in Japan and North America, while Couche-Tard’s operations include the Couche-Tard and Circle K convenience store chains in North America.
A source familiar with the FTC’s thinking said the agency has told corporate lawyers that it is their responsibility to advise clients about preserving documents. Although there is no indication that the companies have destroyed any documents, the FTC is concerned that defense lawyers have suggested that the companies destroy documents ahead of the antitrust investigation.
Recent antitrust investigations involving allegations of document destruction include cases against Google (GOOGL.O) and Amazon (AMZN.O).
Couche-Tard shares fell 2.3% in afternoon trading Tuesday.
Under Chair Lina Khan, the FTC has taken an aggressive stance in investigating transactions for antitrust issues. Other high-profile cases include the proposed $25 billion acquisition of Albertsons (ACI.N) by grocery chain Kroger and the acquisition of Capri by fashion company Tapestry (TPR.N).(CPRI.N) $8.5 billion .
In a statement last week, Couche-Tard highlighted its successful record of acquisitions and working with US and other regulators. The company said it would consider divestments pending regulatory approval.
Seven & Me said Kush-Ted’s proposal “does not fully recognise a number of the significant challenges it faces from the anti-competition authorities” and “does not provide certainty of closing”.
