Alimentation Couche-Tard Inc. could issue debt and tap its pension shareholders for funding in order to finance a proposed deal to buy out 7-Eleven owner Seven & i Holdings Co., people familiar with the Canadian retailer’s thinking said.

A leveraged acquisition of the Japanese company would be feasible because of its strong cash flow, which will help to pay down debt quickly, said the people, who asked not to be identified because the information isn’t public. Couche-Tard is interested in the entirety of Seven & i, they added.