Japan’s Seven & i Holdings announced Monday that discussions have begun with Alimentation Couche-Tard regarding a potential store-sale plan, setting the stage for negotiations on the Laval, Que.-based retail giant’s proposed US$47-billion takeover bid for the 7-Eleven chain.

The talks follow the appointment of Stephen Dacus as Seven & i’s new president and CEO last week. Dacus is tasked with leading the 7-Eleven parent’s recovery and addressing the takeover offer from Couche-Tard, which operates thousands of convenience stores worldwide, including the Circle K brand.

Seven & i has previously expressed concerns that U.S. antitrust regulations could pose a significant hurdle to any agreement while attempting to erect roadblocks to a possible deal. The two companies dominate the U.S. convenience-store market, with a combined footprint of approximately 20,000 locations.

“We and our advisors believe we can now make progress towards determining whether a credible and actionable remedy and divestiture package can be achieved that would allow a realistic assessment of [Couche-Tard’s] proposal under the areas we noted above – value and certainty of closing,” Seven & i said in a letter to shareholders Monday.”

Both companies are now working to determine whether a feasible divestiture strategy can address regulatory concerns and pave the way for a successful acquisition.

Couche-Tard executives are meeting with media outlets in Tokyo this week to discuss their bid, according to Reuters.

Photo: slyellow / Shutterstock.com