7-Eleven parent fires back at Couche-Tard over ‘highly misleading' statement after deal talks break off
Couche-Tard, which owns the Circle K chain, tried for nearly a year to buy 7-Eleven for roughly US$46-billion, but walked away last week. Couche-Tard announced it was pulling the bid in its own blistering public letter accusing the Japanese company of deception and delay.
In its responding letter Tuesday, 7&i says Couche-Tard's statement was 'highly misleading' and argued the Japanese company 'consistently engaged in good faith.'
It also claimed Couche-Tard failed to take antitrust concerns seriously and demonstrated 'an unfortunate lack of knowledge of the Japanese market.'
'We are disappointed that [Couche-Tard] has decided to walk away from these discussions,' the 7&i statement said. 'We are further disappointed that they have done so in a way that completely mischaracterizes both our engagement and the significant hurdles this transaction faced that they were not committed to resolving.'
Alimentation Couche-Tard looking for other targets after pulling Seven & i bid
Antitrust concerns in the United States were among the most significant hurdles a potential deal faced. Combining Circle K and 7-Eleven locations in the U.S. would have resulted in roughly 20,000 stores owned by the same company. Casey's General Stores Inc., which has 2,600 stores, would come in a distant second.
Analysts have estimated Couche-Tard would have needed to sell as many as 2,000 locations in the United States to satisfy U.S. regulatory concerns with the proposal.
'ACT never deviated from the claim that they had a 'clear path' forward on antitrust approval,' 7&i said. 'But that does not make it true.'
The U.S. Federal Trade Commission requested several calls with 7&i about the potential transaction, 'two of which included numerous state Attorneys General, a highly unusual circumstance,' the Japanese company said.
'The critical question was whether ACT could identify a viable buyer who would meet with the FTC's approval,' 7&i said. 'They could not.'
Opinion: Couche-Tard shows institutional investors will back big dreams
Couche-Tard, which first approached 7&i about a potential transaction in August, 2024, declined to comment on the Japanese company's allegations.
It took specific issue with the Canadian company's claim that one of its meetings with executives in Tokyo was brief and 'tightly scripted.'
'To suggest that our management presentations were scripted is to misunderstand Japanese culture,' 7&i said. 'Sometimes being different isn't wrong or an act of resistance.'
The deal would have been both the largest-ever foreign takeover of a Japanese company and the largest acquisition Couche-Tard has made since the company was founded in 1980.
It also represented the first major test of recent reforms to Japanese foreign investment rules designed to make it easier for cross-border transactions to occur. However, few anticipated the first offer to arrive under the new foreign takeover regime would be for one of the country's most beloved corporate entities.
Hedge funds sort out winners and losers as Couche-Tard's bid to buy 7-Eleven owner collapses
Japan is by far 7-Eleven's largest market, with 21,756 locations in the country, representing roughly one-quarter of all its stores globally. There are nearly 3,000 7-Eleven stores in Tokyo alone, with many Japanese locations doubling as emergency shelters in case of natural disasters.
To address the cultural and business differences, Couche-Tard said it had a Japanese partner to educate the company about specifics of the Japanese market, but 7&i pushed back on this, saying Couche-Tard never shared that information with them.
Couche-Tard was planning to borrow tens of billions of dollars to finance the transaction had a deal ultimately been reached. On Tuesday, the 7-Eleven parent said Couche-Tard is facing 'financial and market challenges' and that 'financing markets have changed.'
'But there is no need to blame Seven & i for that reality,' the Japanese company said. 'ACT decided on its own it was easier to walk away.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
24 minutes ago
- CTV News
Ontario, Saskatchewan at odds over Canada's response to Trump tariffs
Ontario Premier Doug Ford warns Donald Trump could end CUSMA 'tomorrow, with one signature,' and that all Canadian leaders are on the same page. Ontario and Saskatchewan remained at odds over Canada's response to U.S. President Donald Trump's escalating trade war Wednesday as the premiers prepared to meet with the prime minister to talk trade. Prime Minister Mark Carney was holding virtual meetings in private with his cabinet and the premiers Wednesday afternoon, less than a week after Trump ramped up his trade assault on Canada with a baseline 35 per cent tariff. The new tariff applies only to goods not covered by the Canada-United States-Mexico agreement on free trade, better known as CUSMA. The latest levy took effect on Friday after the two countries failed to hit an Aug. 1 deadline to secure a new trade agreement. Before meeting with Carney, Ontario Premier Doug Ford said he was frustrated by the impacts of high U.S. tariffs on his province's economy and called again for retaliatory tariffs. 'You can't have tariffs on one side and not the other. I still stand by what I say — dollar for dollar, tariff for tariff,' Ford told reporters at a news conference Wednesday in Thornhill, Ont. 'They understand strength, not weakness, and we should never, ever roll over and be weak.' Saskatchewan Premier Scott Moe, meanwhile, said Wednesday Canada should dial down its retaliatory tariffs. 'Maybe it's time for Canada even to at least not add additional counter-tariffs in this space, but to even consider removing some of the counter-tariffs that are harmful to Canadian businesses and Saskatchewan businesses today,' Moe said during a radio interview, adding that Canada is largely 'protected' by the CUSMA trade pact. Moe said his province is working to protect industries that are being hit hard by tariffs, including the steel sector. 'What we've done is pull forward a significant amount — 10 years, actually — of Crown procurement to support the steel industries here in Saskatchewan,' he said. Moe gave credit to Carney for his government's efforts to strengthen trade ties with other countries, including Mexico, particularly while Canada remains subject to China's canola oil and meal tariffs. When asked to explain why his government ended up putting American liquor back on the shelves and returning to its standard procurement processes, Moe said the government already prioritizes Saskatchewan companies. 'We need to get to that space in a more solid form with our largest trading partner, the United States of America, and someone is going to have to take the early steps,' he said, noting Alberta has also shifted its policies. Alberta Premier Danielle Smith's office said she would not be issuing any statements ahead of the meeting. Ford said he wants to see more done to stimulate the economy. He called on Ottawa to cut taxes and said the Bank of Canada should drop its interest rate. 'We have to get the governor of the Bank of Canada to lower those damn interest rates from 2.75,' he said. 'Knock 'em down. Build confidence. 'Let's work together on getting rid of the HST on homebuyers, and not just first (time) ones. Let's stimulate the market and we'll follow suit if the federal government does that.' Ford said Wednesday he had a 'good conversation' with U.S. Commerce Secretary Howard Lutnick on Tuesday that was 'positive,' and he believes the 'prime minister is doing everything in his power to get a fair trade deal with the U.S.' Carney told a press conference in B.C. on Tuesday that he has not talked to Trump in recent days, but will speak with him 'when it makes sense.' The prime minister added that about 85 per cent of trade with the U.S. remains tariff-free because of CUSMA. Sector-specific tariffs, like the 50 per cent duty on steel, aluminum and copper, remain in place. Foreign Affairs Minister Anita Anand and Finance Minister François-Philippe Champagne were in Mexico City on Wednesday, part of a two-day mission to meet with Mexican officials and businesses on trade. With files from Lisa Johnson in Edmonton, Alta. and Allison Jones in Thornhill, Ont. This report by The Canadian Press was first published Aug. 6, 2025 David Baxter and Kyle Duggan, The Canadian Press
CTV News
24 minutes ago
- CTV News
Sustainably sourced jewelry gives new meaning to second life
Beauty and nature were an obvious combination for Theresa Capell when it came to inspiration for her jewelry and her brand, Miss Foxine Couture. 'Growing up in the Annapolis Valley, I would go for walks in the woods. Sometimes I'd see a fallen butterfly, and I just thought, 'they're so beautiful and gorgeous that I wanted to find a way to preserve their natural beauty', since Earth is the biggest inspiration of all throughout my work,' explained Capell of her unique butterfly wing jewelry. 'I contacted sanctuaries and conservatories across Canada, trying to find ways to preserve their beauty and really letting them know that it's something I want it to be able to pass on, since they're delicate lifespans only last one to two weeks.' She now receives wings every couple of months and repurposes them into necklaces and earrings, which tend to be her biggest hit. 'Everything is so easy to sell because I really believe in her and all of her work,' explained employee, Melissa Bradley. 'And I've been able to see her progress to where she is now, and it's very inspiring.' Miss Foxine Couture Miss Foxine Couture owner Theresa Capell and employee Melissa Bradley at the Halifax waterfront jewelry stand. (CTV Atlantic/ Brianne Foley) Inspiring too for those flocking to the waterfront in Halifax and seeing the bright and beautiful display. 'I get a really good response from them [sanctuaries and conservatories] and from customers, just to know that I'm recycling from nature and I'm reusing beauty at its purest form,' Capell said with a smile. Something Bradley doubled down on. 'Everybody gushes about how talented she is, how wonderful all the pieces are. They love that things are sustainable and ethically sourced, like the butterfly wings and the pearls, so nothing is harmed in the making of the jewelry, because if nothing has to die for art, then it shouldn't.' Capell began Miss Foxine Couture in 2008 to make money while attending design school, she would go to markets to sell her products. 'I fell in love with the process of creating and designing jewelry. It's so hands on, and it really got to put my inspiration out there and my thoughts, ideas into physical form,' she said. 'And when I graduated in 2013, I'm like, 'maybe I can make this into a real thing if I really hustle hard really bring my love into it'.' And the community has supported her venture. 'They really love it. They like seeing my journey, being Halifax founded and being from within Canada,' said Capell. 'A lot of customers have seen my journey from me being like a poor university student. So now being able to use sustainable materials within my work. I love seeing my journey and seeing how my work grows and how I support the environment through my pieces.' Something Bradley loved too, who met Capell 11 years ago while buying a pair of those butterfly earrings, she began working for her part-time. Last year, Bradley began working full-time and sees how people respond to the products they sell. Even in trying times given the tariffs coming from the United States, Capell said Miss Foxine has pivoted and found a surprising response. 'We've been finding it weirdly a little bit better than past years,' Capell said. 'I'm just finding tourists are really wanting to support small businesses. Even Americans, even though it's not an American made product. People are wanting to support that and wanting to pay for small businesses and supporting their lifestyle.' 'Surprisingly, I was talking to a few cruise ship goers, and they were happy to buy local,' added Bradley. 'They were being more mindful as well, which was really surprising just because it's Canadian local. It was nice that everybody's kind of getting on board with trying to support Canada.' But with Miss Foxine, it's not just Canadian culture she wants to highlight. 'I'm Filipino Canadian. My mom's Filipino, my dad's Canadian,' explained Capell. 'Just trying to figure out who I am as an individual, as a Canadian and a Filipino. It's important for me to preserve my heritage and incorporate that throughout my work. So, I'm really expressing who I am as an individual and an artist.' Which is why the pearls for her pieces are sourced from the Philippines, while everything else is local to support her desire for sustainability, and of course, culture. 'The jewelry industry contributes so much to emissions, especially in the water and our carbon footprint,' she said. 'So, it's important for me that I use gold filled and sterling silver. So, you know that your jewelry isn't just going to be thrown out and put in the garbage and causing environmental hazards.' As for the name, she found inspiration through the whimsical. 'It's based on this fairytale of this woman who turned into a fox, and she protects women. And from my work, jewelry is like a totem that you can wear every day to express yourself in your journey.' A journey she continues on everyday. 'Growing up by the ocean, as a kid I was like, 'oh, maybe someday I'll be able to sell things on the beach, have a little hut or a stand',' she smiled. 'I think recently over the last couple of years, being on the Halifax waterfront and being at the Halifax Seaport Farmers Market, I didn't realize that I had brought that vision to life.' Miss Foxine Couture Miss Foxine Couture repurposes butterflies and sources sustainable products to create local jewelry. (CTV Atlantic/ Brianne Foley) For more Nova Scotia news, visit our dedicated provincial page
CTV News
33 minutes ago
- CTV News
Mexico seeks more trade with Canada in face of Trump tariffs
Mexican President Claudia Sheinbaum, left, speaks before a meeting with Prime Minister Mark Carney at the G7 Summit in Kananaskis, Alta., on Tuesday, June 17, 2025. THE CANADIAN PRESS/Darryl Dyck Mexico's president said Wednesday her country will seek to expand trade with Canada amid U.S. President Donald Trump's tariff offensive, which threatens a three-way free trade deal between the North American neighbors. Trump has imposed additional duties on both countries despite the existence of the USMCA treaty, which he has said he wants to renegotiate. He raised tariffs on isolated Canadian imports from 25 to 35 percent from August 1, but has agreed to delay a 30 percent general tariff on imported Mexican goods for 90 days until October. Both countries are affected by global U.S. tariffs on automotive, aluminum and steel exports. Mexican President Claudia Sheinbaum has been hosting senior Canadian officials to discuss strategy in the face of the tariff torrent. 'We have the treaty, obviously, but we also want Canadian companies to continue investing... to expand direct trade between Canada and Mexico,' Sheinbaum said Thursday after meeting Canada's Finance Minister Francois-Philippe Champagne and Foreign Minister Anita Anand. Canada has said the Mexico talks would focus on economic growth, security and trade. The meetings also serve to prepare for a visit by Canadian Prime Minister Mark Carney, for which no date has been announced. Trump has justified the tariffs by accusing the United States' neighbors of not doing enough to stem the flow of undocumented migrants and fentanyl across their borders.
