Proposed 7-Eleven buyout deal will likely face antitrust scrutiny, retail analyst says

Circle K operator Alimentation Couche-Tard's proposal to acquire Japanese rival and 7-Eleven owner Seven & i Holdings Co., is likely to attract antitrust scrutiny, particularly in the U.S., according to a retail analyst. 

"I would imagine that there's going to be some regulatory concern and some required divestment in order to make this [deal] work," Bryan Gildenberg, managing director at Retail Cities, told CNBC's "Street Signs Asia."

Noting that 7-Eleven and Circle K are the two largest convenience store chains in the United States, Gildenberg said he expects the American Federal Trade Commission to have a "very strong point of view" on the potential merger, while Japanese regulators would also have concerns. 

Seven & i Holdings said that it had received a preliminary takeover offer from Canada's Couche-Tard on Monday. Couche-Tard, which confirmed it made a "friendly, non-binding proposal," did not disclose how much it was willing to pay for the company. 

If a deal were to go through, the combined company would represent 12.3% of the U.S. convenience store market, according to a Monday note from Canaccord Genuity Capital Markets. The next largest player in the space is Casey's, with a 1.7% share, the note added.

Antitrust risks in the U.S. would be particularly stark in Florida and Texas, where the stores have a "fairly significant overlap," Gildenberg said. 

While Couche-Tard has about 16,700 stores globally, far fewer than Seven & i Holdings' about 85,800, it commands a highervaluation of $57 billion as per market close on Monday compared with the Tokyo-listed company's nearly $38 billion.  

Seven & i shares jumped 23% in trading on Monday, while Couche-Tard lost over 2% on news of the proposed bid. Seven & i shares fell