3 Big Numbers: An elegy for Couche-Tard's attempted Seven & i buyout
3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
On Wednesday, Alimentation Couche-Tard sent a letter to Seven & i Holdings announcing it was withdrawing its takeover bid for the international conglomerate.
This brought an unceremonious end to what had been a long-running courtship. Circle K parent company Couche-Tard shared some final accusations of bad faith engagement and gave a little more context about the whole saga, adding that it withdrew the bid due to a 'lack of constructive engagement by Seven & i.' Seven & i responded with a short announcement in which it accepted the end of talks, shared vague disappointment in Couche-Tard's 'mischaracterizations' and touted its own ongoing initiatives.
And then it was over.
In this week's '3 Big Numbers,' we pay our respects to the end of a short-lived era as Couche-Tard bows out of its pursuit of Seven & i.
332
The number of days between Couche-Tard making its first bid for Seven & i and withdrawing from the discussions.
Last August, Couche-Tard announced it was pursuing Seven & i. Almost one year later, the Canadian company threw in the towel.
A lot has changed in that time. In its response to Couche-Tard's withdrawal, Seven & i noted that 'there have been significant changes in the global economy, exchange rates, and financing markets. As [Alimentation Couche-Tard] noted on its most recent earnings call, conditions in key markets have deteriorated since last year.'
With the worry about this deal now in the rearview mirror, both companies can move forward. Seven & i has a number of initiatives in the pipeline it's working on, including taking its North American arm public and improving its food and delivery programs.
23%
The gap between Couche-Tard's proposed buyout price per share and the closing price of Seven & i after Wednesday's news.
Couche-Tard's President and CEO Alex Miller and Chairman of the Board Alain Bouchard noted in their letter that Couche-Tard had offered 2,600 yen per share for Seven & i. By the time trading on the Tokyo Exchange closed on Thursday, Seven & i's stock price was 2,008 yen per share — around a 23% difference.
While it's impossible to know how well the stock will be doing in another year or two, right now the breakdown in talks has left a lot of money on the table for shareholders. It seems like many of them voted with their wallets via the stock market.
More than 54 million shares changed hands Thursday on the Japanese exchange, while a normal day's trading doesn't even reach 7 million shares. Trading was even briefly halted during the day.
Couche-Tard, meanwhile, actually saw a stock price boost from the news. It's possible that investors were worried about how much benefit the company could wring out of a deal for Seven & i.
100%
How much of Seven & i Couche-Tard wanted to purchase.
This one sounds obvious, we know. Couche-Tard made a bid for Seven & i, so of course they wanted the whole thing.
But in the letter to Seven & i withdrawing from talks, Couche-Tard leaders shared that there were actually two other options on the table.
Couche-Tard advanced a proposal that would see it buying 40% of the Japanese operations and all of Seven & i's international operations. Seven & i, meanwhile, suggested a deal where Couche-Tard would get 7-Eleven Inc., the North American branch of the company, and the Japanese retailer would get equity ownership in the Canadian retailer.
It's interesting to note that Miller and Bouchard said an agreement for only 7-Eleven Inc. 'would undermine the operational prospects of the combined business.' Seven & i plans to spin off that part of the business in an IPO next year, a move some experts said could clear the way for Couche-Tard to buy just those stores. The company's letter makes that sound a lot less likely.
Editor's note: This article was updated to correct the number of days since Couche-Tard's offer for Seven & i.
Recommended Reading
Couche-Tard ends takeover bid for Seven & i
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
36 minutes ago
- Wall Street Journal
Japan Election Throws a Wrench in Trade Talks
TOKYO—Japan's ruling coalition suffered a significant loss in a parliamentary election Sunday, a setback that risks derailing delicate trade negotiations with the U.S. just weeks before punishing tariffs are set to take effect. Prime Minister Shigeru Ishiba had gambled that his tough stance on trade with President Trump would help cement his shaky grip on power after less than a year in the job and an electoral snub last fall.
Wall Street Journal
36 minutes ago
- Wall Street Journal
Canada Is the Best Friend America's Got
When President Trump withdrew the U.S. from the Trans-Pacific Partnership in 2017, I was profoundly disappointed. In 2015, as Canada's minister of international trade, I helped negotiate the ambitious agreement that set high standards for the global economy and countered China's influence in the Asia-Pacific region. It was more than a trade deal—it was a strategic blueprint for shared prosperity and security among like-minded nations. That withdrawal signaled a larger shift. The Trump administration over its two terms has steadily retreated from the multilateral, rules-based order the U.S. had built since World War II. It has refused to appoint judges to the World Trade Organization's appellate body, effectively paralyzing the system that enforces global trade rules. It has turned to tariffs as a blunt instrument of coercion, wielding them against strategic competitors like China and longtime partners such as Canada.
Yahoo
2 hours ago
- Yahoo
NextStar Energy workers ratify their 1st collective agreement
Workers at Canada's first large-scale electric vehicle (EV) battery cell manufacturing facility have voted in favour of their first collective agreement. In a news release issued Sunday afternoon, Unifor said its members at NextStar Energy have voted 88 per cent in favour of ratifying their first collective agreement, "marking a historic milestone for workers" at the southwestern Ontario plant. "Bargaining a first collective agreement is never easy, and this one took place in an exceptionally difficult economic and political climate," Unifor national president Lana Payne said in the news release. "The work of our bargaining committee at NextStar Energy ensures that as the electric vehicle sector grows, good union jobs grow with it." The one-year agreement includes a five per cent wage increase and gains on wages, wage progression, pensions, short- and long-term disability programs, and workplace health and safety. It also certifies Unifor and Local 444 as the exclusive bargaining agent for employees at the Windsor facility. "By ratifying this collective agreement, our members have secured a voice at work and a seat at the table as this industry takes shape in Canada. We're ready to build the future — together," Unifor Local 444 president James Stewart said in a news release. Unifor said the agreement's one-year term positions workers at NextStar Energy to return to the bargaining table in 2026, aligning closely with the next round of Unifor negotiations with Detroit Three automakers.
