The Caisse de dépôt et placement du Québec (CDPQ) is willing to provide financial backing for Couche-Tard as the retailer attempts to acquire 7-Eleven’s Japanese parent, Bloomberg reported.

“Couche-Tard knows that we will always accompany them in these endeavours if necessary,” Vincent Delisle, CDPQ’s head of liquid markets, told the news service.

The Japanese firm had publicly questioned how Montreal-based Couche-Tard would finance its initial offer of US$14.86 per share in cash. The Seven & i Holdings board has rejected the offer, contending that it “grossly undervalues” the Tokyo-based firm.

But the Canadian company says it remains committed to acquiring the company.

Seven & i contends has also criticized Montreal-based Couche-Tard for failing to explain how it would overcome U.S. regulatory hurdles. But Couche-Tard has said it has a successful history and track record of working with regulators in the U.S. and other countries.

Couche-Tard has noted that it and Seven & i operate in competition with a wide array of food and merchandise providers in several complementary U.S. markets.

The 7-Eleven chain has about 85,800 convenience stores across the globe. Couche-Tard operates approximately 16,800 such retail outlets under different brands, including Circle-K, for which it is best known, in 31 countries.

CDPQ ranks among Couche-Tard’s largest shareholders with a 3.5% stake worth $2.4 billion, according to Bloomberg.

Delisle told Bloomberg that he has “no idea” how much his fund would furnish to help finance a potential deal for Seven & i, but the firm has provided Couche-Tard with both equity and debt previously.

“We have all the flexibility.” Charles Emond, CEO of CDPQ, told Nikkei in September that the pension-fund operator “could participate” in a financing.

In July, Couche-Tard agreed to repurchase $700 million of its shares from CDPQ. According to Bloomberg, Couche-Tard has bought back $1.4 billion of its stock from CDPQ as part of the pension-fund manager’s periodic portfolio-rebalancing efforts.

“That’s something that makes us even more ready to be there when companies make these such big acquisitions,” Delisle told Bloomberg.

Couche-Tard said previously that financing would not be a condition to closing the proposed deal.

Bobby Griffin, a Raymond James analyst, expects negotiations between Couche-Tard and Seven & i to take a considerable amount of time.

“I would be surprised if this came about very quickly,” Griffin told Bloomberg.

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