NEW YORK, Sept 10 (Reuters) - The U.S. Federal Trade

Commission has notified Seven & i ( SVNDF ) of its intention to

investigate a potential takeover of the convenience store chain

by Canada's Alimentation Couche-Tard ( ANCTF ) over antitrust

concerns, a source familiar with the matter said.

Couche-Tard proposed to buy Seven & i ( SVNDF ) for $38.5 billion, an

offer that the Japense retail giant rejected, in part citing US

antitrust concerns.

The FTC sent Seven & i ( SVNDF ) the notice of its intent after the

offer was made public on Aug. 19, the source said, requesting

anonymity as they were not authorized to speak publicly about

the matter.

The FTC could not immediately be reached for comment.