March 06, 2025 08:19 GMT
CONSUMER STAPLES: Couche-Tard: internal restructuring
CONSUMER STAPLES
(ATDBCN: Baa1/BBB+) (SVELEV; Baa2/A)
It is attempting to satisfy equity holders but with little impact; +6% in Tokyo, still -26% below ATD's leaked second offer. Still the chance of ATD closing, or at least the size of a total acquisition may be priced lower on the below updates. The spin-off the US 7-11 stores is interesting - but it indicates it will still hold onto a majority stake.
- $5.37b sale of supermarket business to Bain (PE) as rumoured yesterday
- IPO of 7-11 North America by 2H26 - will retain majority stake
- Commitment to return $13.2b in buybacks by FY30 from the above two
- New President as rumoured - Stephen Dacus - and first foreigner to take the role
- Re. Couche "active and constructive engagement" will continue and (again) flags US antitrust issues.
- Interestingly adds they have been working on a "potential divestiture package (which would be unprecedented in scope and size) that could be divested" to satisfy regulatory concerns.
- ATD has said in the past it is open to divestitures to achieve regulatory approvals.
- FTC began investigating pre-emptively in mid Sept, reminder now a republican majority committee.
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