Latest news with #AntonBridge
Business Insider
02-06-2025
- Business
- Business Insider
Nomura CEO says company is committed to growth of U.S. business, Reuters says
Nomura (NMR) Holdings is committed to growing its U.S. business despite recent market volatility, Anton Bridge of Reuters reports, citing comments made by CEO Kentaro Okuda. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
29-05-2025
- Business
- Yahoo
Markets ask how soon Nippon Steel will benefit from $15 billion bid for U.S. Steel
By Katya Golubkova and Anton Bridge TOKYO (Reuters) -Nippon Steel investors and analysts are asking if its $15-billion deal to buy U.S. Steel, backed but not yet approved by President Donald Trump, is positive for the near term, even if its hopes for strong U.S. demand materialise. Such a merger would create the world's third-largest steel producer by volume, after China's Baowu Steel Group and Luxembourg-based ArcelorMittal, data from the World Steel Association (WorldSteel) shows. The "planned partnership" would create at least 70,000 jobs and add $14 billion to the U.S. economy via Nippon Steel's additional investments, Trump said last week. While full details of the deal remain unclear, U.S. Steel shares surged 21% on the news and Nippon Steel gained 7%. Nippon Steel did not exclude issuing new shares to fund the takeover, Vice Chairman Takahiro Mori said in December, after having already raised some funds through hybrid financing and asset sales. "If the new equity is issued, investors will rightly be asking: is this the best possible use of capital at this moment?" said Fiona Deutsch, lead analyst with Australasian Centre for Corporate Responsibility (ACCR). The company had pledged an investment of up to $4 billion in a new coal-dependent blast furnace, said Deutsch, whose climate activist group holds less than 1% of Nippon Steel's shares. That plan, part of a wider investment commitment of $14 billion, comes "at a time when the global steel sector is shifting towards low-carbon alternatives", she added. Nippon Steel shares were up 1% by 0405 GMT, outperforming the overall Nikkei index which was up 1.6%. Unveiling the deal in late 2023, Nippon Steel offered $55 for each share of U.S. Steel, for a premium of 40% at the time. U.S. Steel shares closed at $53.3 on Wednesday. "There's a lot of immediate negative effects, even though the long-term effect may be positive," said an adviser to institutional investors on strategies for Nippon Steel. He cited the dilution as a further deterrent, besides the high offer price and additional investment commitments. Nippon Steel did not reply to a Reuters request for a comment. "In the short term, there are concerns about financing," said Shinichiro Ozaki, a senior analyst at Daiwa Securities. "Given that U.S. Steel reported a net loss for the January-March period, the stock market may worry about the limited likelihood of a short-term return on the investment." STRATEGIC GOALS Projections that domestic demand will stay weak have pushed Nippon Steel, which is Japan's largest steelmaker, and others to look to overseas expansion, while they consider shutting some blast furnaces at home. U.S. Steel is key to Nippon Steel's goal to raise its global output capacity to more than 100 million metric tons a year from 63 million tons now, as it aims to benefit from demand in India and the United States. Both markets are relatively protected from vast steel exports from China, the world's top producer, thanks to protectionist measures they have adopted, such as tariffs. In March, Nippon Steel President Tadashi Imai, who also chairs the Japan Iron and Steel Federation, warned that U.S. auto and steel tariffs could cut several million tons from Japan's annual steel output to below 80 million tons. Ownership of U.S. Steel could provide a shield for Nippon Steel from the impact of tariffs on non-U.S. operations, said Alistair Ramsay, vice president of Rystad Energy. "Should underlying demand in the United States begin and continue to recover, then we would expect the investment to pay off in good time, regardless of the duration of tariffs," he said. "But that's a big if, given how far the U.S. market has shrunk over the past few years, never mind this century." U.S. steel consumption is expected to rise by 2% this year after a drop of 1.5% in 2024, according to WorldSteel. This month, Nippon Steel said it would cut its dividend for the current fiscal year to 120 yen a share, off last year's 160 yen, and its lowest since 2021, amid a projected fall in profits, but the overall payout ratio would stay at 30%. "For the investor who cares about the share price today, you wouldn't be looking at factoring in synergies based on what you think might happen in two to three years," said the adviser, who sought anonymity as the matter is a sensitive one. 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
Yahoo
01-05-2025
- Business
- Yahoo
Couche-Tard advances deal talks for Japan's Seven & i with access to books
By Anton Bridge (Reuters) -Alimentation Couche-Tard (ACT) and Japan's Seven & i said they have signed a non-disclosure agreement (NDA) that will give the Canadian company access to the Japanese retailer's financial data as it seeks a $47 billion acquisition. The move represents progress in takeover talks for Couche-Tard, which operates the Circle-K convenience stores in Canada and the United States and has been trying to acquire Seven & i since August. The detailed terms of the agreement will remain confidential, 7-Eleven operator Seven & i said in a statement on Thursday. The agreement also includes a "standstill" clause, which protects target companies from hostile takeovers. Couche-Tard has said that access to "fulsome diligence information" may allow it to improve its proposal. The current offer of around $47 billion would already be the largest ever takeover of a Japanese company by a foreign buyer. "The execution of the NDA is a positive step in the constructive engagement process with ACT," Paul Yonamine, who chairs Seven & i's independent special committee to examine bids, said in the company's statement. Seven & i has previously said that until now Couche-Tard's refusal to agree to "standard protections" in a friendly deal, such as a standstill provision, has prevented an NDA from being signed. It has also argued that antitrust hurdles in the U.S. are a principal barrier to the deal, but since March the two have been working together on finding a buyer for over 2,000 stores that are candidates for divestment. While fielding the takeover bid, Seven & i has accelerated an overhaul of its management and business operations that includes selling off non-core business lines, appointing a new chief executive, and proposing four new board members. Proxy adviser Institutional Shareholder Services (ISS) has recommended shareholders support the appointment of the new CEO, Stephen Dacus, and the new board members, according to a report seen by Reuters. Seven & i shares rose 2.7% in early trade in Tokyo on Thursday, outperforming the Nikkei index.
Yahoo
25-04-2025
- Business
- Yahoo
Japan's Nomura posts record annual profit and can ride choppy market, says CFO
By Anton Bridge TOKYO (Reuters) -Japan's biggest investment bank and brokerage Nomura Holdings recorded a 27% rise in fourth-quarter net profit to hit its highest ever full year profit as revenue grew in each of its business segments over the year. The results are for the period up to the end of March and do not account for the market turmoil that followed the U.S. tariff announcements in April, however Nomura can ride out the volatility, its chief financial officer said. "A certain degree of volatility really works in favour of our business," CFO Takumi Kitamura said at an earnings briefing. Although individual customers' investment activity slowed, there had been no rush to sell assets since the start of April. Meanwhile volatility had widened margins in equity and foreign exchange trading in Nomura's markets unit such that revenue trends were above levels in the three months to March, Kitamura said. Nomura reported a profit of 72 billion yen ($501.15 million) for the January-March period, versus 56.8 billion yen in the same period a year prior, and announced a share buyback of up to 60 billion yen. Nomura has cemented a dominant position among Japanese securities firms and its earnings in recent quarters have comfortably exceeded those of rivals Daiwa Securities and Mizuho Securities. Its investment management division reached record business revenue for a fifth consecutive quarter, but assets under management at the end of the quarter fell due to a fall in share prices. Recurring revenue in the wealth management division reached a record high, boosted by strong investment advisory fees. Asset management has become a core growth area for Japanese financial institutions which are looking to secure stable fee-based revenue that is less impacted by the ups and downs of market sentiment. Towards that end, Nomura is acquiring Australian Macquarie Group's U.S. and European public asset management businesses for $1.8 billion in cash, marking its most ambitious expansion abroad since its failed purchase of Lehman Brothers' assets in 2008. Income in Nomura's wholesale division, which houses its investment banking and global markets units, grew 82% compared to the same period the previous year as equity revenues in the global markets division and investment banking revenues rose. Although market volatility has led to many companies adopting a wait and see approach and holding off on equity issuance or M&A, when markets calm activity should return to normal, Kitamura said. ($1 = 143.6700 yen) Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
7-Eleven owner says will need to cut costs as US tariffs hit consumer confidence
By Anton Bridge TOKYO (Reuters) -Seven & I Holdings, the owner of 7-Eleven convenience stores, said it expects it will have to take a hard look at its supply chain and rein in costs as U.S. consumers grapple with the impact of U.S. tariffs. "My assumption is that we are going to be facing a somewhat more challenging retail environment," incoming CEO Stephen Dacus at the Japanese retail conglomerate told reporters. Tariffs imposed and in the works as U.S. President Donald Trump seeks to reshape global trade are expected drive prices sharply higher - posing difficult challenges for retailers. U.S. consumer sentiment deteriorated in April and 12-month inflation expectations surged to the highest level since 1981. Dacus, an outside director who will take the helm next month, added that the biggest impact of U.S. tariffs on the company will be on consumer behaviour rather than directly on its suppliers. "In that environment, you need to look harder at your supply chain, you need to make sure you squeeze your costs really tightly, so you have really good control of it," he said. Reluctantly dealing with a $47 billion takeover bid from Canada's Alimentation Couche-Tard, Seven & i has been on a push to boost corporate value. Delivering on that strategy largely hinges on improving its U.S. division of more than 12,000 convenience stores. North American revenue accounts for 73% of Seven & i's overall sales. Seven & i still plans to list its North American subsidiary in the second half of 2026, but this will depend on market conditions at the time and a delay is possible, Dacus said. "The initial public offering gives us the financial flexibility to invest a bit more aggressively in our stores," he said, adding that he wanted to increase the number of stores with quick service restaurants as they are more profitable. Other measures it has taken include selling off its superstore unit to Bain Capital and embarking on a share buyback programme worth around 2 trillion yen ($14 billion) through fiscal year 2030. The company is engaging with its Canadian suitor but believes it will be difficult to gain the approval of U.S. antitrust regulators. Dacus, who previously headed the special committee charged with examining Couche-Tard's takeover bid, declined to comment on the status of negotiations. "My appointment as CEO had nothing to do with the takeover offer," Dacus said. "We don't talk about Couche-Tard among the management team because there's nothing we can do about it," adding that was the role of the special committee. Seven & i's shares were trading around 2,100 yen on Friday morning, well below Couche-Tard's offer price of 2,700 yen per share, indicating investor scepticism that a deal will materialise. ($1 = 142.9600 yen) Sign in to access your portfolio
