(Bloomberg) — Seven & i Holdings Co. signed a confidentiality pact with Alimentation Couche-Tard Inc., a step that will allow talks to advance on the Canadian retailer’s takeover approach.

But the non-disclosure agreement is limited to the potential divestment of the company’s US stores and not the entire operation of Seven & i, a spokesperson for the Japanese retailer said Wednesday.

The non-disclosure agreement will pave the way for discussions around antitrust issues in the US, Seven & i said, referring to a key point of contention that has held up negotiations.

The move comes after a management buyout plan led by Seven & i’s founding Ito family to keep the company in Japanese control failed. That’s piled pressure on the retailer to engage with Couche-Tard, which first made the takeover approach in August.

The Nikkei newspaper reported on the pact earlier Wednesday.

Seven & i appointed a new Chief Executive Officer Stephen Dacus earlier this month to overhaul the company’s business. It’s since agreed to sell its supermarkets and retail business for $5.4 billion and announced a ¥2 trillion ($13.4 billion) share buyback.

Author Credits: Kanoko Matsuyama
MSN