The government has added Seven & I Holdings to a list of designated “core” companies, a potential obstacle to Alimentation Couche-Tard’s proposal to take over the supermarket chain.
Last month, the Japanese retailer filed for a new designation under the Foreign Exchange and Foreign Trade Act to change its “noncore” status under the law, people with knowledge of the matter said. The new category requires any foreign entity to report in advance any stock purchases in a core company of more than 10%.
While the filing was made in response to a routine request from the Treasury Department, it was seen as an additional step for the Canadian owner of Circle K stores to move forward with a potential acquisition of Seven & I. The 7-Eleven operator’s efforts reflect its caution about the approach, which comes after years of criticism from activist investors that its assets are undervalued.
