Canada's Couche-Tard drops offer to buy Japanese 7-Eleven convenience stores
The 7-Eleven parent company rejected an offer last year, but Couche-Tard, which runs the global Circle K chain, was still interested and tried to coax a deal with the Japanese chain known here as 'conbini.'
In a letter dated July 16 and sent to the Seven & i board, Couche-Tard stressed it had made a good offer earlier this year in a proposal of 2,600 yen ($17.50) per ordinary share in cash, which it said represented a 47.6% premium to the stock price. The initial offer, made last year, was for 2,200 yen ($14.86) per share in cash.
In the letter, sent to media Thursday and signed by its two top executives, including founder Alain Bouchard, Couche-Tard expressed exasperation at the response it was getting from Seven & i, despite repeated attempts at dialogue.
'We have been very patient and respectful throughout this process, beginning with our meeting on July 23, 2024,' the letter said.
'You have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7 & i and its shareholders. We believe this approach reinforces our concerns about your approach to governance. Based on this persistent lack of good faith engagement, we are withdrawing our proposal.'
Couche-Tard, which runs nearly 17,000 stores in more than 30 countries and territories, including the U.S., said the documents it got lacked key information, executives were no-shows at meetings, and the meetings it did have ended up being 'readouts' of statements, not frank discussions.
Seven & i acknowledged the dropped offer Thursday and said it considered talks 'in good faith and constructively.'
'We remain fully committed to our standalone value creation plan, which we have been pursing in parallel, and to unlocking the value of our businesses, including our North American convenience store business. Our plan is concrete and actionable,' it said in a statement.
Some analysts say Seven & i's management has not fully leveraged the business' global potential or delivered enough value to shareholders, and could use better marketing, although its bottom line is unlikely to be affected by U.S. President Donald Trump's tariff policies.
The 7-Eleven franchise, which spans more than 85,000 stores in Japan, the U.S. and Europe, has a new chief executive, Stephen Hayes Dacus, the first foreigner tapped to head 7-Eleven. Dacus, an American with a Japanese mother who has experience at Walmart and Uniqlo, has promised a leaner business by focusing on the supply chain and tailoring shop offerings to various regions.
For the first quarter of this fiscal year, Seven & i reported a doubling in profits to 49 billion yen ($330 million), mainly due to previously announced sales of property and equipment at its Ito-Yokado Co. retail chain.
Quarterly sales held up, as a favorable exchange rate helped some overseas earnings, according to the Tokyo-based chain. The seemingly omnipresent 7-Eleven chain speckles the streets of Japan, offering everything from stationery items and rice balls to hot coffee and utility bill payments.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
30 minutes ago
- Business Insider
Gates, Bezos-backed firm secures Congo deal to boost U.S. mineral access
US-based KoBold Metals has entered into a new mineral exploration agreement with the Democratic Republic of Congo, deepening its presence in one of the world's most resource-rich nations. US-based KoBold Metals has reached a tentative agreement for new mineral exploration in the Democratic Republic of Congo. The deal includes rights to explore the Manono lithium project, a key site amid a legal dispute. This move aligns with US strategies to strengthen its mining ties in Africa, countering China's mineral supply chain influence. US-based KoBold Metals has entered into a new mineral exploration agreement with the Democratic Republic of Congo, deepening its presence in one of the world's most resource-rich nations. According to a statement from Congo's presidency on Thursday, the company, backed by billionaire investors including Jeff Bezos and Bill Gates, has reached an "agreement in principle" to apply for exploration permits in the country. The deal includes rights to explore the Manono lithium project, a major site in southeastern Congo currently at the centre of a legal dispute between the government and Australia's AVZ Minerals Ltd, Bloomberg reported. The agreement was signed in Kinshasa by Congolese Mines Minister Kizito Pakabomba and KoBold's local managing director, Benjamin Katabuka. KoBold has not yet issued a public comment. Congo is a critical supplier of key minerals for the global energy transition. It is the world's largest producer of cobalt, the second-largest source of copper, and holds vast reserves of lithium and tantalum, essential for electric vehicle batteries and clean energy technologies. Countering China The signing comes amid growing US efforts to strengthen strategic partnerships in Africa's mining sector, aiming to counter China's dominance in global mineral supply chains. China currently dominates much of Congo's mining landscape, a position bolstered by the exit of major US firms in recent years, most notably when Freeport-McMoRan sold its stake in the massive Tenke Fungurume copper and cobalt mine to China's CMOC in 2016. In response, the US administration is encouraging American investment in Congo's critical minerals sector. In a related development, a US-led consortium, including a company founded by former special forces personnel, is now the leading contender to acquire Chemaf Resources Ltd., a major copper and cobalt producer in Congo. A previous attempt by China's state-owned Norinco Group to purchase Chemaf reportedly failed to secure Congolese government approval. The KoBold deal was announced as part of broader US-Congo cooperation efforts, which also include American-backed peace talks aimed at ending the ongoing conflict in eastern Congo, where a rebel group supported by Rwanda has seized significant territory. KoBold, known for its use of artificial intelligence to identify mineral deposits, also plans to support the digitisation of Congo's geological data.
Yahoo
an hour ago
- Yahoo
ECB Won't Flinch Yet in the Shadow of Trump's Trade War
(Bloomberg) -- The European Central Bank is likely to stare down the economic danger posed by US President Donald Trump's tariffs by opting to leave a potential cut in borrowing costs for another day. The Dutch Intersection Is Coming to Save Your Life Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint How San Jose's Mayor Is Working to Build an AI Capital In their final decision before a seven-week summer break, policymakers on Thursday will probably keep the interest rate unchanged at 2%, pushing off a response to Trump's threatened tariffs of 30% until they materialize and their impact can be better assessed. With many officials likely to use the interlude for a long holiday, the temptation to restate that inflation is at target, and to postpone worrying about the economic outlook until new quarterly forecasts are compiled for the Sept. 10-11 meeting, may seem appropriate. What policymakers do know, however, is that trouble is lurking. Aside from concerns about tariffs, the euro has strengthened, damping the outlook for prices and threatening to further squeeze exporters. Meanwhile, another political crisis in France may be brewing over its bloated public finances. Given that backdrop, the ECB Governing Council could acknowledge among themselves that the chance of another rate cut in September is growing, even if they stick with their well-worn 'meeting-by-meeting' approach to decision making. In that vein, President Christine Lagarde, in her opening statement to reporters on Thursday, is likely to restate that risks to growth are 'tilted to the downside,' Morgan Stanley economists wrote in a preview titled 'Ready for the Beach.' What Bloomberg Economics Says: 'We expect the Governing Council's language after the July 24 meeting to be similar to the wording in June, leaving open the possibility of additional cuts without committing to them.' —David Powell, senior euro-area economist. For full analysis, click here Economic reports in the coming week will inform their deliberations. They include the ECB's own bank lending survey, due on Tuesday, consumer confidence on Wednesday, and purchasing manager indexes from across the region and other major economies, set for release on Thursday, hours before the outcome of the ECB deliberations. Other key indicators such as Germany's closely-watched Ifo business confidence and Italian economic sentiment will follow on Friday. Elsewhere, inflation numbers from Japan to Brazil and testimony by the UK central bank chief are among the things in store for investors. Click here for what happened in the past week, and below is our wrap of what's coming up in the global economy. US and Canada The US economic data calendar is relatively light and highlighted by a pair of housing market reports. On Wednesday, June data from the National Association of Realtors are projected to show a third month of scant change in sales of previously owned homes. Contract closings have been hovering near an annualized rate of 4 million, just above last year's level that was the weakest since 2010. Meanwhile, economists expect a government report on Thursday to show new-home sales recovered a bit in June after posting the biggest monthly decline since 2022. The pace of contract signings on new houses has largely trended sideways for the better part of two years. The housing market has struggled to gain traction as elevated mortgage interest rates and affordability constraints keep many potential buyers sidelined. Other reports include Friday's release of June durable goods orders, preceded by S&P Global's July manufacturing and services surveys on Thursday. Fed policymakers are in a blackout period ahead of their July 29-30 meeting, although Chair Jerome Powell on Tuesday gives welcoming remarks at a conference focused on capital frameworks for large banks. For more, read Bloomberg Economics' full Week Ahead for the US Further north, the Bank of Canada's business and consumer surveys for the second quarter will offer fresh insight into inflation expectations and investment plans. Retail data for May and a flash estimate for June are likely to show slumping sales as consumers pull back after a tariff-driven rush to buy cars earlier in the year. Two fiscal monitors from the federal government may contain more details about retaliatory tariff revenues collected to date. Asia Asia's data docket offers a broad cross-section of economic signals, from trade in South Korea to inflation indicators in Japan, Singapore and New Zealand. The figures will help clarify how the region's economies are responding to trade-related uncertainties. South Korea opens the week on Monday with 20-day trade data, an early indicator for July exports. Next follows consumer confidence on Wednesday and retail sales during the week, offering a read on household conditions after the Bank of Korea held rates steady this month. Also on Monday, China will release loan prime rates, which are expected to be kept steady for a second month in July, taking a cue from the People's Bank of China. Australia takes the spotlight on Tuesday with minutes from the Reserve Bank's July policy meeting, at which it shocked investors by keeping rates on hold at 3.85%. The minutes may offer a clearer sense of how close policymakers are to resuming their easing cycle. RBA Governor Michele Bullock is gives a speech on Thursday. On Tuesday, Taiwan is set to publish export orders for June, along with employment data. India's July PMIs, due Thursday, will indicate the resilience of both manufacturing and services activity. Japan closes out the week on Friday with a full slate of data, including Tokyo CPI, department store sales and factory activity. The inflation reading will offer an early steer on national price trends, while the other releases will help assess how well domestic demand and production are holding up. New Zealand reports second-quarter inflation on Monday, while Singapore publishes its price gauges on Wednesday and industrial production data on Friday. Thailand has car sales and customs trade balance figures during the week. For more, read Bloomberg Economics' full Week Ahead for Asia Europe, Middle East, Africa The UK will release public finance data on Tuesday at a time when its economic woes and fiscal position are very much in focus. With unemployment at a four-year high and growth faltering, PMI numbers on Thursday and retail sales on Friday may also draw attention. Britain's exposure to market stress may be a topic when Bank of England Governor Andrew Bailey and colleagues testify on financial stability to lawmakers on Tuesday. Their report on the matter earlier this month highlighted how UK bonds risk being hit by a wave of forced selling by highly leveraged hedge funds. Consumer-price numbers are among the highlights elsewhere. Data on Wednesday from South Africa will likely show inflation quickened to 3.1% in June from 2.8%, due to higher meat prices. Iceland's equivalent numbers are published the following day. For more, read Bloomberg Economics' full Week Ahead for EMEA Aside from the ECB, other rate decisions are scheduled across the wider region: Nigerian policymakers will probably leave their key rate unchanged at 27.5% for a third straight meeting on Tuesday, as inflation at 22.2% remains elevated and both core and food price growth have started accelerating again. Hungary's central bank is expected to keep borrowing costs on hold for a 10th consecutive month the same day, despite a sluggish economy, after inflation accelerated in June. The Ukrainian central bank is set to decide on policy two days later. Officials in Kyiv have kept the main rate at 15.5% since a hike in March. Turkish policymakers are expected to resume cutting borrowing costs on Thursday after reversing course in the face of political turbulence in March. The central bank is forecast to cut the key rate to 43.5% from 46%. The Bank of Russia has indicated it's likely to lower borrowing costs when policymakers meet on Friday, possibly by more than the 100 basis points reduction it announced in June that brought the key rate to 20% from a record high 21%. Latin America Argentina on Monday posts May GDP-proxy data. Economic activity in April jumped 1.9% from March and 7.7% a year earlier as President Javier Milei loosened some currency controls, part of a $20 billion agreement with the International Monetary Fund. Analysts surveyed by Bloomberg last month marked up their year-on-year forecasts for Argentina's second- and third-quarter output, to 8% and 4.2% respectively. Mexico, Latin America's No. 2 economy, takes center stage at mid-week, offering up economic activity data along with the mid-month consumer prices report. The May GDP-proxy print on Tuesday comes on the heels of April's better-than-expected readings, and after the economy flirted with a technical recession earlier in the year. A proliferation of headwinds — not least of which are US tariff and trade policies — has many analysts forecasting a shallow second-quarter slump, though. After a string of uncomfortably warm inflation readings, Mexico's June prints ticked down as supply shocks cooled. Against the backdrop of forecasts for modest disinflation, the central bank has signaled that it's likely to slow the pace of its easing cycle. Closing out the week, Brazil's mid-month inflation report will likely see a third straight lower reading under the weight of the highest borrowing costs in nearly two decades. Inflation expectations for 2025 have begun to come down, but remain above the central bank's target to the forecast horizon. For more, read Bloomberg Economics' full Week Ahead for Latin America --With assistance from Beril Akman, Mark Evans, Vince Golle, Tony Halpin, Erik Hertzberg, Robert Jameson, Swati Pandey and Monique Vanek. A Rebel Army Is Building a Rare-Earth Empire on China's Border How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover How Taylor Swift Turned a Glitter Freckle Maker Into a Sensation ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
- Bloomberg
ECB Won't Flinch Yet in the Shadow of Trump's Trade War
The European Central Bank is likely to stare down the economic danger posed by US President Donald Trump's tariffs by opting to leave a potential cut in borrowing costs for another day. In their final decision before a seven-week summer break, policymakers on Thursday will probably keep the interest rate unchanged at 2%, pushing off a response to Trump's threatened tariffs of 30% until they materialize and their impact can be better assessed.
