Couche-Tard sees ‘clear path' to Seven & I deal with U.S. stores divestment
The two agreed earlier this year to discuss the potential divestment of more than 2,000 stores in the U.S. and seek out interested parties in order to address concerns by Seven & I over a merger being blocked by the U.S. Federal Trade Commission. Couche-Tard also pushed back against any parallels to a failed $24.6 billion merger of grocery chains Kroger and Albertsons.
Seven & I, which operates 7-Eleven, Speedway and Sunoco stores, has pushed back against Couche-Tard's unsolicited ¥7.39 trillion ($51.3 billion) takeover proposal and is overhauling its business under new Chief Executive Officer Stephen Dacus to raise its value. Despite the resistance, Couche-Tard, the parent company of Circle K, has advanced discussions by securing a non-disclosure agreement two months ago to gain access to financial information and potentially raise its bid.
"We have received multiple indicative proposals from highly experienced and credible buyers,' Couche-Tard said on a website it set up to explain its proposal to buy Seven & I. "We believe the actionable, strong and broad level of interest so far clearly demonstrates that we have several clear paths to consummate the required divestitures and complete the transaction.'
Several private equity firms have shown strong interest in buying the assets, Filipe Da Silva, Couche-Tard's chief financial officer, said in March.
Couche-Tard also addressed some concerns over a potential merger by highlighting the differences between its proposal and the scuppered combination of Kroger and Albertsons. The FTC blocked the deal on antitrust grounds last year, saying that the divestiture plan was insufficient; Seven & I cited this as a high-risk factor for getting a deal with Couche-Tard approved.
"The convenience store industry in the U.S. is highly fragmented and competitive,' Couche-Tard said. "The combination of Couche-Tard and Seven & i results in a business with less than 13% of U.S. convenience stores.'
The Canadian retailer also reiterated that it has put "forth a compelling reverse termination fee' in the event of a transaction not going through.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Japan Times
3 hours ago
- Japan Times
U.S.-Philippines trade talks yield modest tariff shift after Trump-Marcos meeting
U.S. President Donald Trump announced on Tuesday a new 19% tariff rate for goods from the Philippines after what he called a "beautiful visit" by Philippine President Ferdinand Marcos Jr. to the White House, and said U.S. goods would pay zero tariffs. The new tariff rate is just below the 20% threatened by Trump earlier this month, but still above the 17% rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19% rate announced for Indonesia and bests Vietnam's slightly higher rate of 20%. Trump posted the news on his Truth Social media platform after meeting with Marcos in the Oval Office, where he had earlier signaled a deal could be reached during the visit. "It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff," Trump said, calling Marcos a "very good and tough negotiator." Trump said the two Pacific allies, who will celebrate 80 years of diplomatic relations next year, would also work together militarily but gave no details. Marcos, the first Southeast Asian leader to meet Trump in his second term, told reporters at the start of the meeting that the United States was his country's "strongest, closest, most reliable ally." He had no comment after Trump's post on the new tariff rate. Trump said the "very big numbers" in the trade agreement would only grow larger. The U.S. had a deficit of nearly $5 billion with the Philippines last year on bilateral goods trade of $23.5 billion. Trump has upended global trade flows with tariffs on nearly every trading partner, with almost all countries facing a 10% tariff that took effect in April and many facing steep additional tariffs from August 1. Gregory Poling, a Southeast Asia expert at Washington's Center for Strategic and International Studies, said it was too early to say much about the Philippines trade deal since no details had been released, as was the case with similar pacts with Indonesia and Vietnam. "At the end of the day, I don't think the Philippine government is sweating the final number so long as it keeps Philippine-made goods competitive with those of its neighbors, which this does," Poling said. Philippine officials had said Marcos planned to stress that Manila must become economically stronger if it is to serve as a truly robust U.S. partner in the Indo-Pacific. Protesters gathered near the White House as Marcos arrived, demanding the Philippine leader address pleas of Filipino Americans and migrant workers who have made multiple requests for support amid federal immigration raids. The White House also announced further details of a framework for a U.S.-Indonesia trade agreement on Tuesday, saying negotiators were due to finalize the terms in coming weeks. During the Oval Office event, Trump said he may visit China for a landmark trip "in the not-too-distant future" and noted the Philippines had distanced itself from Beijing after his election last November. "The country was maybe tilting toward China, but we un-tilted it very, very quickly," Trump said. U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the deadline for negotiating a trade deal, U.S. Treasury Secretary Scott Bessent said the same day. "I think trade is in a very good place with China," Bessent told Fox Business Network's "Mornings With Maria" program. He added that the meetings with his Chinese counterparts would take place next Monday and Tuesday with discussions over rebalancing the U.S.-China trade relationship.
NHK
3 hours ago
- NHK
Japan's top negotiator visits White House for trade talks
Japan's top tariff negotiator visited the White House on Tuesday. Japanese government sources said he is believed to have met with US President Donald Trump. Japanese Economic Revitalization Minister Akazawa Ryosei is in Washington for another round of trade discussions. He held a two-hour meeting with US Commerce Secretary Howard Lutnick the day before. He also met with Treasury Secretary Scott Bessent earlier on Tuesday. In an interview with the Fox Business Network before that meeting, Bessent said trade negotiations with Japan were "going very well." He described the Japanese side as "tough negotiators," and added that Tokyo has "really come to the table." Trump is ramping up negotiations with other trading partners. He posted on social media that the United States has "concluded" a deal with the Philippines. It includes Manila paying a 19 percent tariff and the two countries working together militarily. Washington's August 12 tariff deadline with China is also approaching. Bessent said he will meet his Chinese counterparts next week in Stockholm, and he will be working out what is "likely an extension" of the deadline. The meeting is planned for Monday and Tuesday.
Japan Times
4 hours ago
- Japan Times
Japan and U.S. reach tariff deal with ‘reciprocal' rate at 15%
Japan and the United States have reached a deal with the 'reciprocal' tariff rate set at 15%, U.S. President Donald Trump announced Tuesday. 'This Deal will create Hundreds of Thousands of Jobs — There has never been anything like it,' Trump said on Truth Social. 'Perhaps most importantly, Japan will open their Country to Trade including Cars and Trucks, Rice and certain other Agricultural Products, and other things. Japan will pay Reciprocal Tariffs to the United States of 15%.' Ryosei Akazawa, Japan's chief tariff negotiator, entered the White House for a meeting with Trump on Tuesday evening, public broadcaster NHK reported citing unnamed government sources. Akazawa, who arrived in Washington on Monday for the eighth round of negotiations with the Trump administration, met with U.S. Commerce Secretary Howard Lutnick for more than two hours on Monday evening and Treasury Secretary Scott Bessent for about 30 minutes on Tuesday morning, according to the Cabinet Secretariat and NHK.
