Neil Saunders, managing director of GlobalData, noted in an email that the Federal Trade Commission would likely scrutinize the levels of concentration, particularly due to current concerns over consolidation in the food and essentials sector.
Japanese sentiment may also pose hurdles. While reforms have made takeovers easier in Japan, many companies, including Seven & i, remain cautious about change. The complexity of Seven & i’s operating model adds further difficulty to the acquisition.
Additionally, Japan recently classified Seven & i as ‘core’ to national security, which could further complicate the deal.
This mirrors a previous setback for Couche-Tard, when its attempt to acquire French grocery chain Carrefour SA three years ago was blocked by the French finance minister, citing concerns over food security.
Though that deal fell through, both companies agreed to explore future operational partnerships.