02:28 PM EDT, 08/21/2024 (MT Newswires) -- BMO has updated its synergies estimate for Couche-Tard following Seven & i's disclosures.

"We now have over 20% accretion, which is very compelling, driven by i) a purchase multiple of 9x vs. ATD's 12x, ii) large synergies figure more than offsetting divestitures, iii) low cost of debt at Seven," writes BMO analyst Tamy Chen.

However, "if Seven expects a materially higher valuation or asset divestitures are much larger, and/or not to mention if Japanese regulators are in opposition of a merger, the feasibility and accretion could change materially," Chen adds.

Couche-Tard is rated Outperform, with an $89 target.

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