Latest news with #AlimentationCouche-Tard
Business Insider
6 days ago
- Business
- Business Insider
'Highly Misleading': Alimentation Couche-Tard Stock (TSE:ATD) Notches up as Seven & i Pushes Back
It would be easy to think that the recent failed deal between Canadian convenience store giant Alimentation Couche-Tard (TSE:ATD) and Japanese convenience store giant Seven & i would be the end of the story. That is not the case, however, as Seven & i is fighting back against remarks Couche-Tard made in the aftermath of the failed deal. Seven & i fighting back is good news for Couche-Tard, though, as investors gave it a fractional boost in Wednesday morning's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. When the deal ultimately fell through, Couche-Tard declared that Seven & i had pretty much scuttled the whole thing by refusing to play along for the year that Couche-Tard tried, ultimately in vain, to get something going. But Seven & i is fighting back, calling Couche-Tard's remarks 'highly misleading,' and noting that Seven & i acted in good faith that whole time. In fact, for all of Couche-Tard's allegations that Seven & i was a dead fish, Seven & i's response was that, essentially, Couche-Tard was the exact opposite: a loose cannon in a china shop that absolutely did not care about consequences. Seven & i's concerns about antitrust issues and the broader market were largely dismissed, and Couche-Tard had no real plan to address those concerns at all. Missed Opportunity or Dodged Bullet? Meanwhile, outside observers are surveying the wreckage of the deal, and wondering if this was a missed opportunity. Indeed, some outsiders think exactly that. But a substantial amount of outsiders are also thinking that this was less a missed opportunity and more a missed disaster in the making. Mohamed Amer, PhD, who also serves as a 'CEO & strategic board advisor' as well as a 'strategy doctor,' noted that Couche-Tard here '…avoided a likely disaster in terms of value destruction, and 7-Eleven gets to continue controlling its strategic direction and cultural coherence.' Headcount Corporation founder and CEO Mark Ryski noted that '…it's not unusual for one or both parties to get cold feet. I suspect that's what happened here.' While there certainly would have been advantages in some senses—Couche-Tard's footprint would have gone way up while Seven & i could have focused on its Japanese business—it may well have been for the best to shutter the deal altogether. Is Alimentation Couche-Tard Stock a Good Stock to Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:ATD stock based on 12 Buys assigned in the past three months, as indicated by the graphic below. After a 7.29% loss in its share price over the past year, the average TSE:ATD price target of C$82.67 per share implies 7.38% upside potential.
Nikkei Asia
22-07-2025
- Business
- Nikkei Asia
Japan's 7-Eleven parent issues rebuttal of Couche-Tard criticisms
A slide shown by Alimentation Couche-Tard at a Tokyo press conference in March to explain its proposed acquisition of 7-Eleven owner Seven & i Holdings. The Canadian retailer withdrew its bid on July 17. YURIKA YONEDA TOKYO -- Canadian retail group Alimentation Couche-Tard (ACT) never identified a viable strategic buyer for the U.S. outlets that needed to be divested to deal with antitrust issues arising from the proposed combination with Seven & i, the Japanese company said on Tuesday. The Japanese operator of the 7-Eleven convenience store chain accused the Canadian company of mischaracterizing the proposed deal's "significant hurdles", and being uncommitted to resolving them, in the latest exchange of blame over the Canadian company's failed bid.
Business Insider
22-07-2025
- Business
- Business Insider
Alimentation Couche-Tard Stock (TSE:ATD) Surges as Buybacks Return
We followed the saga of Canadian convenience store giant Alimentation Couche-Tard (TSE:ATD) for months as it doggedly pursued the acquisition of Japanese convenience store giant and 7-Eleven parent company Seven & i. And when the deal finally broke down into no deal at all, Couche-Tard wasted no time and got back on the horse, launching a new share buyback plan. This was fine news for investors, who sent shares surging up 3% in Monday morning's trading. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Without the need to pay for 7-Eleven, Couche-Tard decided to focus its efforts, and its cash, on bolstering share prices by buying back stock. In fact, a program recently approved by the Toronto Stock Exchange calls for it to buy back as much as 10% of outstanding stock. That represents nearly $6 billion worth of shares, reports note. Couche-Tard had, for a while, suspended its share buyback efforts, citing a need to keep cash on hand to address a potential merger. But with that merger now officially off the table, that cash is sitting around with nothing to do, and Couche-Tard means to change that. 'Who Are We Supposed to Believe?' Meanwhile, the post-mortem reports around the now-dead deal have been emerging, and devolving into a he-said-she-said kind of affair that is leaving outside observers scratching their heads. Couche-Tard, for its part, believed that Seven & i was simply not willing to negotiate, constantly throwing up roadblocks into the process. Meanwhile, Seven & i asserted regularly that it was willing to negotiate, but it had what it believed were valid concerns about antitrust issues—especially in the United States—and the global economy as a whole. This led those outside observers to ask, 'Who are we supposed to believe?'. Reports suggest that Seven & i was never interested in a deal from the start, regarding Couche-tard's '…overtures as hostile and contrary to its interests.' However, elements within Seven & i insisted on pursuing the deal regardless, believing that it would 'boost its corporate value.' Is Alimentation Couche-Tard a Good Stock to Buy? Turning to Wall Street, analysts have a Strong Buy consensus rating on TSE:ATD stock based on 12 Buys assigned in the past three months, as indicated by the graphic below. After a 9.11% loss in its share price over the past year, the average TSE:ATD price target of C$82.67 per share implies 5.89% upside potential.
Nikkei Asia
18-07-2025
- Business
- Nikkei Asia
Seven & i deal collapse seen sending signals to activist investors
Alimentation Couche-Tard's attempt to buy the operator of the 7-Eleven convenience store chain was widely seen as a litmus test for Japanese conglomerates' openness to M&A bids by foreign acquirers. (Source photos by AP and Kosuke Imamura) LISA KIM, JADA NAGUMO and SHOTARO TANI TOKYO -- Canadian retailer Alimentation Couche-Tard has called it quits after a yearlong siege to take over Japan's iconic Seven & i Holdings. Market experts see the withdrawal as an invitation for activist investors to step up their campaigns to push for more change in corporate Japan. Recent corporate governance reforms, increased investor activism and government guidelines on fairness and transparency when receiving takeover bids have powered dealmaking to record highs in Japan.
Business Times
18-07-2025
- Business
- Business Times
Couche-Tard's failed bid for Seven & i sparks debate over Japan
[TOKYO] Alimentation Couche-Tard's decision to walk away in frustration from an attempted acquisition of Seven & i Holdings set off a debate in Tokyo as to what lessons foreign companies with ambitions for M&A should draw. The bid was audacious from the start. 7-Eleven convenience stores have one of Japan's most recognisable brands and a takeover would have been the largest by a foreign entity in the country's history. Moreover, the founding Ito family members were so opposed to the deal that they turned to one of their archrivals to try and block it. Still, the government, which has been pushing for companies to take a more investor-friendly approach, did not raise strong political opposition, even though Seven & i had sought greater protection under a law that could have scuttled a deal. While Couche-Tard placed the blame squarely on intransigence from Seven & i's management, the failure of the deal runs counter to the broader trend in the investing landscape, according to Nicholas Smith, a strategist at CLSA. 'Seven & i is just an obstructive character in an ongoing success story,' said Smith. 'Activist trades and shareholder proposals are on fire. Private equity sees Japan as one of the most attractive markets in the world and is hiring aggressively. Management can't afford to relax one bit.' Stephen Dacus, the new chief executive officer of Seven & i, now has to prove that the Japanese retailer can grow and boost its efficiency on its own. The shares fell 9 per cent on Thursday (Jul 17) after Couche-Tard walked away from its bid. The company plans to sell its superstore business for US$5.4 billion, and is proposing a two trillion yen share buyback and a listing of its US business. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Seven & i's rejection of the deal is a sign of more aggressiveness in Japanese firms, according to Jesper Koll, expert director at Monex Group. 'The issue is not that this is old-style Japan protectionism, quite the opposite,' said Koll. 'This is actually an injection of energy and competitive spirits into a Japan-led management team that is actually very international.' The history of attempted takeovers of marquee Japanese companies by outsiders is mixed. KKR, CVC Capital Partners and Blackstone walked away from a buyout of Toshiba after meeting stiff resistance from management. Concerns about the valuation, complexity and political nature of the deal were all headwinds that eventually resulted in a consortium led by a domestic fund prevailing. Hon Hai Precision Industry, better known as Foxconn, pulled off a deal in 2016 to take a controlling stake in Japanese electronics maker Sharp for 389 billion yen. The Taiwanese electronics contract manufacturer had pursued the Japanese company for years. Foxconn founder Terry Gou had lobbied Japanese lawmakers, co-opted banks and sweetened its offer to outmanoeuvre a Japanese government-backed bidder. 'The implications of today's news will only be understood a year from now, and will hinge on whether management succeeds in accelerating group reforms and turning around the situation in both Japan and the US,' said Michael Jacobs, an investment analyst at T Rowe Price Japan on Thursday. Unsolicited offers have quite often met strong resistance regardless of where the prospective buyers come from. Japanese motor maker Nidec made an unsolicited bid for Makino Milling Machine, shocking many Japanese companies that had never imagined they could become a takeover target by a Japanese firm. Nidec, like Couche-Tard, withdrew the bid earlier this year due to strong opposition. In another closely watched case, Taiwan's Yageo made a takeover bid for Shibaura Electronics, prompting a counterbid from Japanese rival Mineba Mitsumi. Others argued that the failure of the Couche-Tard deal had nothing to do with the nationalities or cultures of the companies involved. The issue was simply money and Couche-Tard's 6.8 trillion yen (S$59 billion) bid simply was not enough. 'Seven & i did what any US company would do,' said Jamie Halse, CEO & CIO at Senjin Capital Pty. 'It was up to Couche- Tard to put in a knockout offer.' BLOOMBERG
