Latest news with #SeveniHoldings
Yahoo
3 days ago
- Business
- Yahoo
Couche-Tard restarts share buybacks after ending Seven & i takeover bid
LAVAL — Alimentation Couche-Tard Inc. says it's restarting its share buyback program after it announced last week that it had ended its efforts to acquire the owner of the 7-Eleven chain. Laval, Que.-based Couche-Tard says the Toronto Stock Exchange had approved its program to buy back up to 10 per cent of outstanding shares that, based on its current price, represents about $5.8 billion in shares. The company says the potential repurchasing of about 77.1 million shares is an appropriate use of its cash and an efficient way to create long-term shareholder value. Couche-Tard had been keeping funds on-hand as it tried for more than a year to land a friendly takeover of Japan-based Seven & i Holdings Co. Ltd. in a deal that could have been worth more than $60 billion. The company said last Wednesday it had withdrawn its proposal, citing a lack of constructive engagement from Seven & i. Seven & i said it had engaged in good-faith discussions, but had also expressed concerns about antitrust hurdles and the broad shifts in the global economy that would challenge the prospects of any deal. This report by The Canadian Press was first published July 21, 2025. Companies in this story: (TSX:ATD) The Canadian Press 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
Forbes
6 days ago
- Business
- Forbes
Couche-Tard Walking Away From Seven & I Deal May Not Be End Of Story
Couche-Tard has walked away from its bid for 7-Eleven's owner. (Photo by) Japanese 7-Eleven owner Seven & i Holdings Co. could yet remain a buyout target if the convenience store group fails in its business turnaround after dramatically seeing off Alimentation Couche-Tard Inc.'s $45.8 billion takeover approach. The deal, which would have been the biggest ever foreign takeover of a Japanese company, ended in acrimony as Canada's Couche-Tard issued a 1,500-word missive to Seven & i's founding Ito family claiming they had never been open to talks and that the board had carried out a 'calculated campaign of obfuscation and delay.' And newly appointed Seven & i CEO Stephen Dacus will now have to convince investors that reforms proposed by his management team can deliver, especially in North America and Japan. The CEO is due to give an update on its turnaround in August. But it looks like he will have a job on his hands to convince investors. While Seven & i shares have climbed since Couche-Tard's interest became public in August 2024, they are down around 13% since the proposal was withdrawn this week and are off about a fifth in the year to date. Earlier this week Alimentation Couche-Tard flounced away from its pursuit as the global convenience store and fuel operator cited a 'lack of constructive engagement'. In a highly unusual step Alex Miller, President and CEO of Alimentation Couche-Tard, and Alain Bouchard, Founder and Executive Chairman, wrote in a letter to the Japanese company's board: "There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives. Rather, you have engaged in a calculated campaign of obfuscation and delay, to the great detriment of 7&i and its shareholders.' Among other things, Couche-Tard claimed that documents it received from Seven & i lacked important information and that executives had failed to show up at meetings. Seven & i Rebuts Claims Seven & i said in a rebuttal that it was disappointed by Couche-Tard's decision, claiming the Couche-Tard letter contained 'numerous inaccurate statements' and maintained that its special committee had taken part in 'sincere and constructive discussions.' In May, things looked very different. Couche-Tard and Seven & i had entered into a nondisclosure agreement to advance discussions and began looking for potential buyers for their overlapping U.S. convenience stores in a move to mitigate antitrust concerns. In its letter, Couche-Tard maintained there was a 'a clear path to U.S. regulatory approval.' For Seven & I's part, further investor-friendly efforts will be tough to enact, given that it has already taken major steps to overhaul the business and is set to sell off some retail operations in a $5.4 billion deal that will close September. It is also taking steps to bolster its shares with a five-year, circa $13.5 million buyback. But so far that has failed to move the dial, especially as some of the funding was due to come from an initial public offering of the U.S. business. Couche-Tard's exit has raised questions over that plan. Seven & i Looks To Reform However, should leave Seven & i clear to pursue growth and profitability in its convenience stores business, which investors have been pushing for. Indeed, Seven & i has previously reformed after external pressure. In 2016, concerns raised by activist fund Third Point over executive appointments resulted in the exit of former chairman Toshifumi Suzuki. Seven & i Holdings could yet be a takeover target. (Photo by Kazuhiro NOGI / AFP) (Photo by KAZUHIRO ... More NOGI/AFP via Getty Images) And ValueAct Capital Management's campaign led to Seven & i selling its Sogo and Seibu Co. department stores to Fortress Investment Group in 2022 for $1.7 billion, although it failed to oust then CEO Ryuichi Isak. For Seven & i, while operating profit for the March-thru-May rose 9.7% year-on-year to $438 million, it was the second-lowest quarterly result in the past decade and domestic same-store sales remained flat, while revenue remained weak in the U.S. While Couche-Tard may have stepped away, its decision to make its views public could potentially attract other bidders or activist investors, or prompt the resurrection of a management buyout by Seven & i's founding Ito family. The underperfroming share price also makes Seven & i a prime candidate to be taken private. Indeed, while Couche-Tard has placed the blame squarely on Seven & i's management, some analysts have argued that the failure of the deal was simply because the offer from was not big enough to counter Seven & i's opposition.
Bloomberg
17-07-2025
- Business
- Bloomberg
Couche-Tard Couldn't Outlast Seven & I as Its Own Headwinds Grew
Alimentation Couche-Tard Inc. ended its pursuit of Japan's Seven & i Holdings Co., with the Canadian retailer's ambitions giving way to mounting pressures in its own business and a protracted share slump. Couche-Tard showed remarkable persistence in the roughly yearlong campaign, which included a publicity blitz in Japan to court consumers and a pledge to find buyers for more than 2,000 US stores to head off antitrust concerns. It even indicated a willingness to sweeten the ¥6.77 trillion ($46 billion) offer, representing a near 48% premium on the undisturbed stock price.
Yahoo
17-07-2025
- Business
- Yahoo
7-Eleven parent company committed to stand-alone plan after Couche-Tard walks away
MONTREAL — The parent company of 7-Eleven says it remains committed to its stand-alone plan after Canadian company Alimentation Couche-Tard Inc. backed away from its offer to buy its rival. Japanese company Seven & i Holdings Co. Ltd. says it engaged in good faith and constructively with the Quebec-based company to explore the possibility of reaching a deal. Couche-Tard has said that it walked away from its offer Wednesday due to what it called a "lack of constructive engagement." Had the deal gone ahead, it would have handed Couche-Tard a dominant position in the global convenience store game. Couche-Tard spent nearly a year courting the Japanese company which also holds a broader portfolio of supermarkets, food producers and financial services companies. Couche-Tard has close to 17,000 stores in 29 countries and territories around the world. This report by The Canadian Press was first published July 17, 2025. Companies in this story: (TSX:ATD) The Canadian Press
Bloomberg
17-07-2025
- Business
- Bloomberg
Couche-Tard Ends Yearlong Pursuit of 7-Eleven Owner as Turnaround Pressure Builds
Canada's Alimentation Couche-Tard Inc. dropped its ¥6.77 trillion ($45.8 billion) proposal to buy Seven & i Holdings Co., putting pressure on the operator of 7-Eleven convenience stores to show shareholders it can stage a turnaround in an environment that's made corporate deals more likely in Japan. The yearlong pursuit of what would have been the biggest foreign takeover of a Japanese company ended in acrimony, with Couche-Tard saying Seven & i's founding Ito family had never been open to talks and blaming the board for a 'calculated campaign of obfuscation and delay.'
