Supermarkets

Giant LBO brings barbarians to Seven & i’s rescue

13 Nov 2024

The founding Ito family has offered $58 bln to take the 7-Eleven operator private. The whopping deal would stretch Japan’s financing markets and require a management overhaul to generate decent returns. Still, it gives the board another alternative to Canadian suitor Couche-Tard.

Bidders poke holes in Japan’s fair M&A push

21 Oct 2024

Seven & i and Fuji Soft have each dug in their heels against generous takeover approaches from Canada's Couche-Tard and buyout firm Bain Capital. New guidelines are reshaping the market for deals in the $4 trln economy, but reluctant targets retain power to simply say no.

Weak 7-Eleven defense might embolden Couche-Tard

10 Oct 2024

Japan’s top convenience store owner will spin off its superstores and trim stakes in non-core assets to fend off a $47 bln takeover approach. It’s a disappointing strategy update. The Canadian suitor can consider taking its offer directly to the target’s long-suffering investors.

Couche-Tard clears price hurdle to Seven & i deal

9 Oct 2024

The Canadian suitor can cut enough costs to justify its revised 53% indicative premium, valuing its rival's enterprise at $55 bln. Though antitrust concerns in the US remain, it seriously raises the bar for the Japanese target's strategic update on its plans to unlock value.

Seven & i defence calls for radical strategy

23 Sep 2024

A 20% jump in the company's stock price after it rejected Couche-Tard's $39 bln takeover puts the 7-Eleven operator under pressure to lay out a plan to improve shareholder returns. So far CEO Ryuichi Isaka has only tinkered at the edges. A drastic overhaul may be necessary.

Couche-Tard gives 7-Eleven owner easy defence path

6 Sep 2024

The Japanese company's board unanimously rejected its Canadian suitor's $39 bln takeover offer. The 21% premium is well short of Seven & i's breakup value. For this deal to be a real test of Japan's receptiveness to foreign M&A, Couche-Tard needs to work a whole lot harder.

Nestlé’s CEO switch serves up unappetising menu

23 Aug 2024

The $275 bln consumer-goods group is replacing its boss of eight years, Mark Schneider, with insider Laurent Freixe. Weak sales and a sliding valuation probably justify the abrupt change. But investors will fear it heralds a more painful turnaround than they previously expected.

Consumer titans have Covid-era issue, in reverse

26 Jul 2024

In the pandemic, Nestlé and Unilever’s higher prices were accompanied by falling sales. Now they are tempting consumers to buy more products, but prices are harder to budge. One issue hasn’t changed: the giants’ vulnerability to cheaper and healthier eating habits.

Big Beer’s low-alcohol Plan B has too much froth

9 Jul 2024

Carlsberg, AB InBev and Asahi have set toppy targets for their teetotal products. Health concerns and Gen Z’s aversion to alcohol imply that’s a safe bet. But at $13 bln the market is still puny – and if the likes of Coca-Cola muscle in there will be a smaller barrel to share.

Britvic can swerve Carlsberg dilution

21 Jun 2024

The soft drinks maker rebuffed a $4 bln cash deal from the Danish beer giant. Carlsberg wants to boost its no-alcohol business, so may yet return with a more generous offer. But Britvic’s cocktail of geographic expansion and low-sugar drinks means it can also grow on its own.

Petrol station tycoon picks poor time to exit Asda

29 Apr 2024

TDR may buy Zuber Issa’s 23% stake in the UK grocer, increasing its own holding. Since their 2021 deal Asda has repaid a big chunk of its debt, but market struggles mean it merits a lower multiple. The buyout shop’s consolation is it can drive a hard bargain on price.

ESG is ghost at global retailers’ annual feast

19 Apr 2024

LVMH, Amazon and peers gathered in Paris for the industry’s yearly shindig. The growth areas in the $30 trln sector are Shein-style cheap garments and the Middle East. Both jar with retailers’ previous focus on environmental, social and governance factors.

Stephen King ghost-writes trustbusting bestseller

27 Feb 2024

The US FTC is suing to block the $25 bln merger of grocers Kroger and Albertsons partly because of perceived harm to union labor. It resembles, oddly enough, a winning DOJ lawsuit over Penguin’s deal to buy Simon & Schuster. The case has a good shot at becoming a horror classic.

Capital Calls: CVC, Grocer wars, Atos

2 Nov 2023

Concise views on global finance: The European buyout group has postponed its plans to list in Amsterdam; British supermarket Sainsbury’s is thriving, which is bad news for rivals like CD&R-owned Morrisons; French IT firm Onepoint has grabbed a 10% stake in ailing peer Atos.

Capital Calls: Food prices, Brookfield, SPAC spin

3 Oct 2023

Concise views on global finance: The cost of ingredients for the average UK meal fell 0.1% in September; the Canadian giant’s $1 bln renewables deal reflects how European green assets are getting more appealing; Singapore’s SPAC puts a new spin on blank-cheque targets.

French iced tea feud will inflame grocer wars

14 Sep 2023

Carrefour is warning customers that suppliers like Unilever are raising prices on drinks and other goods by shrinking packages. The move will keep the government on side in its war against inflation. But smarter shoppers may hunt for bargains and go to discounters Lidl and Aldi.

Grocers learn lessons of ‘greedflation’ drama

12 Sep 2023

Food-price rises are easing, which is good news for supermarkets that stand accused of profiting from consumer pain. In this Exchange podcast, Ahold Delhaize CEO Frans Muller explains why demand for own-brand goods gives the Dutch group an upper hand in supplier negotiations.

Instacart’s mixed bag has valuation opportunities

28 Aug 2023

The food delivery firm is worth far less than its high point in 2021. The cost to get new customers is rising, too. But a push to sell ads, a sensible business, could help bring its valuation close to $17 bln. As long as Instacart is reasonable, it can get its listing, finally.

Amazon’s fumbled M&A leaves few good options

13 Jul 2023

The $1.3 trln giant splurged on grocer Whole Foods and movie studio MGM. But it hasn’t disrupted these sectors as hoped. Instead, both divisions are becoming more expensive and less promising. Ditching one would be an option if it weren’t so financially painful.

Czech sphinx’s Casino bet trumps French insiders

5 Jul 2023

The retailer must choose between two offers to cut its 6.4 bln euro debt load. Daniel Kretinsky’s deal brings more equity, helping the grocer spruce up stores and compete. But he will need France to ditch its preference for domestic owners like rival tycoon Xavier Niel.