The Globe and Mail reports in its Friday edition that Couche-Tard, the convenience-store giant trying to take over 7-Eleven, says it has started talks with its Japanese rival on a possible deal amid a challenging U.S. retail environment. The Globe's Nicolas Van Praet writes that Montreal-based Couche-Tard, which controls the retail banner Circle K, struck a non-disclosure agreement with 7-Eleven parent Seven & i Holdings in April, a crucial step. On a call Thursday to discuss fourth-quarter earnings, Couche-Tard chief executive officer Alex Miller declined to comment on the likelihood of a deal but said he does not expect the process to drag on indefinitely. "We are engaged" with Seven & i, Mr. Miller said. "We've signed the NDA, we are engaged in diligence, we are engaged in management meetings, we are engaged on the divestiture. And I think the benefit of that is it's setting a timeline. And I believe that timeline will be shorter rather than longer." The rivals have also been working with investment bankers and lawyers on securing buyers for stores they might have to sell to satisfy competition concerns -- an estimated 2,000 U.S. locations. Couche-Tard shares are down 19 per cent from their 52-week high.