Today, some Canadian stocks on my list have become a little cheaper.
Do you also have Canadian stocks on your radar?
Postos
29New offer from 7-Eleven owner could derail Couche-Tard and include US IPO
Another hat could soon be thrown into the bidding cupboard. The Japanese Ito family, the founders of the 7-Eleven chain in the country, is set to launch a management buyout of Seven & i Holdings $3382 (-0,87%) worth 9 trillion yen (60 billion dollars). The offer would be against
an offer of 7.1 trillion yen (47 billion dollars) from Canadian company Alimentation Couche-Tard
$ATD (-0,34%) a multinational convenience store operator that owns rival Circle K in the US.
Background:
Seven & I
has long been under pressure from activist shareholders and rejected an initial offer from Couche-Tard in September on the grounds that the company undervalued its business and failed to address regulatory concerns. A higher offer was eventually made, but new efforts are being made to prevent the brand from falling into foreign hands. An offer from the founding Ito family would prevent the largest takeover in Japan and lead to Seven & I being split into three independent companies.
The first would raise more than one trillion yen (6.6 billion dollars) in cash via the IPO of the North American 7-Eleven businesses (as well as gas station subsidiaries Speedway and Sunoco). These businesses generated sales of 70.3 billion dollars in the last fiscal year, demonstrating the strength and reach of the company. Another planned unit would include 7-Eleven convenience stores in Japan, while the latest division was announced back in October and would be created by spinning off Seven & I's non-core Japanese businesses such as supermarkets, specialty stores and retail outlets.
Announcements of dividends/distributions today
AIRPORTS OF THAILAND PCL
$AOT-F (-0,6%) TH0765010Z16 - 0.79 THB - 0.0219 EUR
ALIMENTATION COUCHE-TARD INC
$ATD (-0,34%) CA01626P1484 - 0.195 CAD - 0.1319 EUR
FUTUREFUEL CORP
$FF (+0%) US36116M1062 - 0.06 USD - 0.057 EUR
KIMBERLY-CLARK DE MEXICO SAB DE CV
$KIMBERA MXP606941179 - 0.465 -MXN 0.0217 EUR
GLADSTONE CAPITAL CORPORATION
$GLAD (-0,36%) US3765358789 - 0.4 USD - 0.3806 EUR
OLD DOMINION FREIGHT LINE INC
$ODFL (+1,03%) US6795801009 - 0.26 USD - 0.2474 EUR
OLD POINT FINANCIAL CORPORATION
$OPOF US6801941070 - 0.14 USD - 0.1332 EUR
PACIFIC TEXTILES HOLDINGS LTD
$1382 (+0%) KYG686121032 - 0.07 HKD - 0.0085 EUR
I can add to this list if anyone else has an interesting company to add.
Alimentation Couche-Tard $ATD (-0,34%) is confident despite a challenging second quarter
Service station operator ATD remains confident in its global network and long-term strategic growth plan, even though parts of its convenience and service station business faced challenges in the second quarter.
Total sales of goods and services increased by 6.6% year-on-year to 4.4 billion US dollars (4.2 billion euros) in the period, while comparable store sales fell by 1.6% in the US, 1.5% in Europe and other regions and 2.3% in Canada.
Alimentation Couche-Tard attributed this decline to the curtailment of spending on non-essential consumer goods as low-income consumers faced difficult economic conditions and the continued decline of the cigarette industry.
Net profit attributable to shareholders fell by 13.5% year-on-year to 708.8 million US dollars (674.6 million euros) in the second quarter. In the same period of the previous year, it amounted to 819.2 million US dollars (779.6 million euros).
Quarterly highlights
Sales in the second quarter increased by 6.0% year-on-year to 17.4 billion US dollars (16.6 billion euros), mainly due to the contribution from acquisitions and higher sales in fuel trading.
However, this effect was partially offset by a lower average selling price for road transportation fuels as well as weaker fuel demand and traffic volumes as low-income consumers were affected by the difficult economic conditions.
Gross profit for the quarter amounted to $3.2 billion (€3.05 billion), an increase of 7.3% year-on-year, while adjusted EBITDA increased by $36.1 million (€34.4 million), or 2.4% year-on-year, to $1.5 billion (€1.4 billion).
Filipe Da Silva, Chief Financial Officer of Alimentation Couche-Tard, said: "Throughout the second quarter, we saw sequential monthly improvements, particularly in same-store merchandise sales in the United States, and we are encouraged by this positive momentum as we enter the third quarter."
"Our strategic focus on operational excellence and cost management resulted in a modest 2.3% increase in normalized costs. This enabled us to outperform an environment of easing inflation. As we continue to pursue growth opportunities, our strong balance sheet and disciplined capital deployment will support our proven long-term goal of creating value for our shareholders."
Source: esmmagazine.com
Depot review November 2024 - The depot is growing despite larger withdrawals 🚀
Before I continue with the second part of my investment story, I would first like to share my portfolio review for November.
The second half of November was almost quiet compared to what happened at the beginning of November. Trump was elected, triggering a veritable run on the stock markets. Germany was finally freed from the traffic lights and there were also some exciting topics in the private sphere. I sold a few shares back in October to generate the equity I needed to start building a house. This continued a little further in November.
Overall, my savings rate will also (have to) be lower over the next few months. Less into the portfolio and more into the "buffer account" for building the house. Nevertheless, around €500 per month will continue to be invested and this will be pushed up again as quickly as possible.
After selling 6 shares and an ETF in October, I sold parts of my MSCI World ETF for around €13,000.
But now it's finally time to look at the hard figures:
Monthly view:
In total, November was +6,3%. This corresponds to price gains of ~20.000€.
The MSCI World (benchmark) was +7.3% and the S&P500 +5.1%
Winners & losers:
A look at the winners and losers is particularly exciting this month:
On the winning side with a total of almost €5,000 in price gains, my crypto investments in Bitcoin and Ethereum. This is followed by the long runner NVIDIA with price gains of just under €2,000. 4th and 5th place then goes to the cybersecurity sector with Palo Alto Networks and Crowdstrike.
On the loser side looks very quiet this month. Amgen is still the worst performer with losses of ~€600 due to a weight loss drug that failed to fully meet Wall Street's hopes. This is followed by Sartorius with share price losses of €200. Places 3-5 are then occupied by share price losses of less than €100. All in all, a month with almost no losers.
The performance-neutral movements in October amounted to just under € -6,000. Parts have already been removed here for private topics.
current year:
My performance in the current year is +29,9% and thus above my benchmark, the MSCI World with 26.9%.
In total, my portfolio currently stands at ~345.000€. This corresponds to an absolute growth of ~€93,000 in the current year 2023. ~72.000€ of this comes from price gains, ~3.300€ from dividends / interest and ~16.000€ from additional investments.
Dividend:
Buying & selling:
Target 2024 & outlook 2025:
My goal for this year is to reach €300,000 in my portfolio. Due to the extremely positive market performance in the current year, my portfolio already stands at ~€345,000 at the end of November.
As is well known, one should not praise the day before the evening, but I am optimistic that my portfolio will not fall so far in December that I will not reach my target.
What will happen in 2025? The logical goal would of course be to reach €400,000. However, due to the upcoming house construction, part of the assets will be invested in the house construction. If I include the property in my statement of assets, the target of €400,000 would of course not change. However, as I am tracking my liquid assets here, I will probably refrain from doing so.
Therefore, my year-end target for 2025 will probably be closer to the final balance for 2024. So around €350,000 at the end of 2025.
How are things looking for you? Have you already thought about your plans for 2025?
Couche-Tard's 7-Eleven overlaps face skeptical scrutiny from US FTC
Circle K operator Alimentation Couche-Tard is likely to face tough antitrust scrutiny from the U.S. if it proceeds with its $47.2 billion takeover bid for 7-Eleven owner Seven & I Holdings.
The companies are in direct competition in thousands of locations across the United States. Data compiled by Bloomberg shows that more than 45 percent of Circle K's are within three miles of a 7-Eleven or comparable store.
Jennifer Rie, an antitrust analyst at Bloomberg Industries, said there is a very high likelihood that the U.S. Federal Trade Commission could categorize the level of concentration as problematic.
The data "suggests that there will be a lot of overlap that will need to be closely scrutinized by the FTC," she said. "Divestitures will likely be required."
Canada-based Couche-Tard - which operates more than 6,700 Circle K stores in the US - is seeking to acquire the Japanese owner of 7-Eleven and Speedway, which has about 13,300 stores in the US. The deal would unite the No. 1 and No. 2 convenience store chains in the US, according to the industry magazine CSP, which publishes an annual ranking.
Alain Bouchard, founder and chief executive of Couche-Tard, said the company was working on solutions to any antitrust issues.
"We have of course read comments about possible obstacles that we could face in North America from the US FTC and we have an answer to that," Bouchard said in an interview. "In the 74 acquisitions we've made, we've had many discussions with the FTC and have always been able to find a good solution."
Seven and I declined to comment.
After its initial offer was rejected, Couche-Tard raised its bid and proposed $18.19 per share, or 7 trillion yen ($47.2 billion), last month, Bloomberg reported. A deal between the two companies would create a global convenience store giant with more than 100,000 stores worldwide and 20,000 in the US.
According to Bloomberg's analysis, there were 8,077 instances in which one or more Circle K stores were within 3.2 kilometers of at least one 7-Eleven or related store. To eliminate these overlaps, the merged company might have to divest up to 2,463 stores, or 12.31% of the outlets that would be owned by the merged company.
The FTC, headed by Lina Khan, views large mergers with skepticism. The agency has filed a lawsuit to prevent Kroger from acquiring Albertsons - which would be the largest grocery deal ever - and has been scrutinizing potential deals in both the grocery and oil markets because of concerns about persistent inflation.
In merger reviews, antitrust regulators often look at the locations of companies, assuming that nearby stores compete with each other but that a merged company could close one, limiting consumer choice. Authorities often try to get companies to sell locations or, if too many stores would have to be divested, they try to prevent a deal altogether.
California would be the hardest hit by a potential deal. There, 927 7-Eleven or related stores are located near Circle K stores, according to Bloomberg's analysis. In Texas and Florida, more than 500 Circle K stores would be affected.
Both Couche-Tard and 7-Eleven were involved in previous mergers in which the FTC required divestitures that focused primarily on fuel retailing, Rie said. In those deals, the FTC considered stores within a 3-mile (4.8-kilometer) radius. When 7-Eleven acquired Sunoco's retail stores in 2018 and later Speedway in 2021, the agency required the companies to sell 76 and nearly 300 stores, respectively, to address concerns about the impact on retail gas networks.
Couche-Tard's purchase of Holiday Companies in 2018 also required divestitures. Both Couche-Tard and 7-Eleven were later fined by the FTC for not fully complying with the terms of these settlements - an indication that the agency continued to monitor both companies after these deals.
Source: https://www.japantimes.co.jp/
#seven-eleven
#atd
#couche-tard
#takeovers
When would you $ATD (-0,34%) in?
I think between 63 and 68 $ very interesting
Facts, news & background information on Alimentation Couche-Tard and the upcoming purchase of 7-Eleven from Seven & i Holding.
The relentless search for growth enters the next round at Alimentation Couche-Tard.
An ATD store in Montreal
Alimentation Couche-Tard started in Quebec in 1980 with a single store. Now there is a good chance that the retailer will take over the largest convenience store operator in the world: 7-Eleven.
Currently, 7-Eleven's more than 84,000 stores worldwide are owned by Japanese retail giant Seven & i Holdings, which rejected a 38.5 billion dollar offer from ATD earlier this month.
However, with the door still open for future deals and ATD reportedly considering increasing its offer price, it is possible that the Canadian company is on the verge of an acquisition that would make it one of the largest retailers in the world.
7-Eleven employees at the 7-Eleven supermarket in Tokyo
Alain Bouchard founded the company 44 years ago with the first store in Quebec. The store was modeled after the Quebec Depanneur, a regional corner store unique to the province.
Through a series of acquisitions, Bouchard transformed the chain into a global convenience store brand that is now one of Canada's largest companies and one of the world's largest convenience retailers.
Yan Cimon, a professor of strategy at Laval University's business school in Quebec City, said the company has always been "in a relentless pursuit of growth." "But it's a pursuit of what I would call disciplined growth," he said. "That means when you look at how ATD selects the assets it wants to acquire, the company knows very well what price it should pay and what price it could pay to make the asset profitable and create value."
The company now operates more than 16,000 convenience stores in North America and Europe, mostly under the brand names Couche-Tard, Circle K and On The Run. A takeover of Seven & i would be its crown jewel.
According to Cimon, part of the strategy behind the acquisitions is to adapt the offering in the various countries so that it is tailored to the culture and regional preferences of the respective country.
The company's first acquisition was in 1985 in the form of 11 convenience stores in Quebec City. Couche-Tard subsequently bought two more convenience store brands, and in 1987 acquired Sept-Jours-stores into its portfolio in 1987 and bought 60 Mac's-stores in 1993. The latter brand became Circle K in 2015.
Couche-Tard acquired 86 stores from the corner store operator Perette in 1994.
Alimentation Couche-Tard then expanded beyond its home province in 1997 by acquiring C-Corp Inc. a subsidiary of the grocery chain Provigowhich included stores in Quebec, Ontario and Alberta.
The distinctive red logo, a winking night owl, comes from this acquisition. The term couche-tard itself refers to a person who stays up late, or a "night owl".
The convenience brand bought its competitor in 1999 Silcorp Ltd. of Toronto, and then acquired a 30-store chain called Tabatout, more than 100 Dunkin' Donuts stores and 13 Quali-T corporate stores in the 2000s.
However, the company's real "growth spurt" came with the acquisition of the assets of the Norwegian oil company StatOil in 2012, says Cimon.
"The Scandinavian deal essentially showed that they could buy large assets overseas at a price that was acceptable to them, a price that allowed them to create value," he explained.
"It also proved that they could run a low-margin business, like corner stores or dépanneurs do, but they could do it in a very different cultural context to what we know from North America."
On the same day that Alimentation Couche-Tard announced its offer to Seven & i, the company also announced the acquisition of GetGo Cafe and Markets from Giant Eagle Inc. The company expects to close the deal sometime in 2025.
While the acquisition of French grocery retailer Carrefour fell through in 2021, Couche-Tard announced earlier this year that it would acquire some assets from TotalEnergies SEa French oil company, at the beginning of the year.
The deal brought Couche-Tard to Germany, the Netherlandsto Belgium and Luxembourg.
However, due to the size of its business, Seven & i represents a new challenge for Couche-Tard.
"If they're going to buy a conglomerate as large as Seven & i Holdings, at some point they're going to have to rethink the operational side of the business," Cimon said. He noted that Seven & i has other assets outside the convenience industry that Couche-Tard may want to sell at some point should the deal go through.
Couche-Tard made an unsolicited offer to Seven & i in August to buy the company's outstanding shares for $14.86 per share.
Seven & I rejected the deal on the grounds that it was not in the best interests of shareholders due to potential regulatory hurdles and that the offer "grossly undervalued" the company.
However, some shareholders have publicly urged the company to consider Couche-Tard's offer or suggested that it would benefit the company. This includes investor Artisan Partners, which owns more than one percent of Seven & i.
The company's rejection of Couche-Tard's offer "sets in motion a new deadline for management and the board to show how they intend to deliver more value than Couche-Tard has offered," said Ben Herrick, associate portfolio manager at Artisan.
If Couche-Tard buys Seven & i, it would be the largest acquisition of a Japanese company by a foreigner in history ‼️
The deal has yet to be approved by Canadian regulators, but Seven & i has raised concerns with the Federal Trade Commission in the US, which, under the leadership of FTC chairwoman Lina Khan, is cracking down on antitrust deals.
Couche-Tard has indicated that the company is willing to sell some of its other assets to increase its chances of gaining regulatory approval in the US. The company will also update its offer to resolve regulatory issues in Japan.
According to data from the London Stock Exchange Group (LSEG), Couche-Tard's takeover of Seven & i would be
would be the largest cash offer by a company since Elon Musk bought Twitter for more than USD 40 billion in 2022. 😱
"I think Couche-Tard is at a stage in its development where it could successfully buy a company as big as 7-Eleven or Seven & i," said Cimon.
While 7-Eleven is a well-known convenience store in Canada, in Japan it has become a fixture in the culture - there are more than 21,000 of these convenience stores, or "Conbini," across the country.
Unlike their North American counterparts, they are a popular destination for foodies, offering a wide variety of prepared and fresh foods, from sandwiches to onigiri (rice balls with various fillings) and packed lunches.
The prospect of a Canadian company taking over from 7-Eleven's Japanese parent company has raised questions at home and abroad.
Earlier this year, Seven & i announced plans to introduce more than 200 food items in its US 7-Eleven stores, including some distinctly Japanese offerings. According to Reuters, this announcement was greeted with enthusiasm by food fans . It's unclear whether a Couche-Tard acquisition could affect this planned expansion of flavors in the US.
But could the acquisition also mean that onigiri will appear on the shelves of Canadian 7-Eleven stores?
When one company acquires another, it can learn from that company's best practices, says retail expert Lisa Hutcheson. But that doesn't mean everything can be adopted.
Canadians tend to go grocery shopping in bulk rather than making frequent small purchases. That means convenience stores here tend to focus on junk food and quick snacks rather than the wider range of products found in Japan, she said.
"Every country has its own culture and its own customers," she said. "The Japanese convenience store is different from the one in Canada."
Source: cbc.ca
The company $ATD (-0,34%) is currently the third largest position in my portfolio. If it goes down again, I will also reorder here with the "night owl". 😁
+ 1
Dear Community,
What is at the top of your watchlist?
For me:
$SNPS (-0,46%)
$NXPI (-0,25%) or $ASML (-0,33%) and $ATD (-0,34%)
VG
Depot review August 2024 - calm before the (September) storm?
While September has lived up to its name so far (worst month on the stock market, negative in more than 50% of cases), August was a boring month in my portfolio. In keeping with the vacation season, my portfolio also shifted down a gear.
Monthly view:
In total, August was +0,5%. This corresponds to price losses of ~1.400€.
This was therefore unable to fully make up for the losses from the previous month of July (-2.2%).
Winners & losers:
There was therefore not much going on on the winners' and losers' side in August.
On the winning side are MercadoLibre and Palo Alto Networks at the top with ~€1,000 each. They are followed by Starbucks, Crowdstrike and Meta.
On the loser side are the crypto assets in my portfolio in August. Ethereum at the top with price losses of €1,500, Bitcoin in 3rd place with €900. Alphabet with ~€1,000 in price losses.
The performance-neutral movements in August were just under €4,000, after being somewhat lower in the previous months due to private issues.
However, only just under €1,400 of this went into shares, the rest is cash.
Current year:
My performance in the current year is +15,3% and thus still slightly above my benchmark, the MSCI World at 14.2%. Even if the gap is slowly narrowing.
In total, my portfolio currently stands at ~312.000€. This corresponds to an absolute growth of ~€60,000 in the current year 2023. ~44.000€ of this comes from price gains, ~2.400€ from dividends / interest and ~13.000€ from additional investments.
Dividend:
Buys & sells:
Target 2024:
My goal for this year is to reach €300,000 in my portfolio. Due to the extremely positive market performance this year, my portfolio currently stands at ~€312,000.
However, after the first few days of trading in September, my portfolio only stands at €304,000. Compared to the level of €320,000 at the end of June, this is now a significant decline in total assets.
It therefore remains exciting to see how the share price will develop in the last third of the year. However, if we see a year-end rally after a weak September, I am optimistic about my target.
Principais criadores desta semana