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Couche-Tard on charm offensive with Seven & i in Tokyo
Alimentation Couche-Tard's management will address the antitrust concerns raised by Japan's Seven & i during a visit to Tokyo to advance talks on its $47 billion offer for 7-Eleven's convenience store operator. Circle-K's owner has been pursuing Seven & i since months, despite the cold reception it received from the Japanese retailer giant. If the deal goes through, this would be the largest foreign acquisition in Japan's history. Couche-Tard is holding its first press conference on Thursday in Tokyo since it announced a purchase bid for Seven & i back in August. This was part of their efforts to convince a Japanese public that was skeptical of a foreign acquisition of a prized asset. Couche-Tard expressed its frustration on Tuesday at 7-Eleven's "limited involvement" and said that it is confident of a "clear pathway" to overcome U.S. regulations in the proposed acquisition. Couche-Tard said that it was working with Seven & i to develop a plan for divesting some of its stores in the United States. Stephen Dacus - the newly appointed CEO of Seven & i - has, however, reiterated that there are significant regulatory obstacles in the way. Both firms have about 20,000 convenience stores between them. Anti-Trust Issues The trip of Couche-Tard's management to Tokyo, and its engagement with Seven & i regarding antitrust concerns, show the extent to which dealmakers will go to secure deal certainty in the face of U.S. regulator scrutiny. Deal advisers say it is rare for transactions to engage in detailed discussions about divestment before a deal has been agreed upon or a confidentiality agreement signed. Kathy O'Neill is a partner with the law firm Fried Frank. She said, "I have never seen a situation where the divestiture package was set in stone before the merger agreement was executed and the buyer baked into it." She said that preparing a divestiture plan before the merger agreement is reached could help reduce the chance of surprise, and save time and energy spent on chasing down a deal. Tim Cornell, a litigation associate and member of Debevoise & Plimpton’s Antitrust Group agreed that the airing antitrust concerns prior to a deal being announced was not normal. He said that buyers would test the waters in certain situations with regard to a divestiture program, especially if they have identified this as what's needed. Couche-Tard sweetened their offer in October, and said they were committed to it. This was after a competing management buyout proposal of $58 billion by Seven & i’s founding family did not materialise. (Reporting and writing by Abigail Summerville and Anton Bridge, respectively; editing by Sumeet Chaterjee and Jamie Freed).
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Andy Home: Bad news for American beer consumers as aluminium tariffs begin to kick in
Here are some good news about aluminium in the United States. President Donald Trump has backtracked on his threat to slap a 50% tariff on Canadian metal imports. The bad news. They will have to pay a 25% tariff on all aluminum products, regardless of where they come from. The market has already changed to reflect Trump's double-down on tariffs in order to revive domestic smelting capacities. CME Midwest Premium, which reflects the cost of unwrought aluminum delivered to an American fabricator above the London Metal Exchange base price, has reached record highs. The premium on aluminium will continue to flow down until it reaches the final user. This could be Ford Motor, Lockheed Martin, or any of the many independent breweries in the country. Tariffs are still the same as they have been and will remain so long as the United States is dependent on imports. HANGOVER TARIFF The original tariffs Trump imposed on aluminum in 2018 were 10%. Within a year, the Beer Institute which represents nearly 8,000 American brewers, estimated that they had already added $250 million to the cost of the industry. Harbor Aluminum, a consultancy, found that 50 million dollars had been sent to the U.S. Treasury. Another 27 million dollars went to domestic smelters. The remaining $173 million was given to fabricators who turn metal into aluminium sheets for beer cans. The Beer Institute was irritated that the import duty was passed on, despite the fact that U.S. cansheets typically contain around 70% recycled material sourced locally. Tariffs usually work in this way. Ask European aluminum buyers. Import tariffs on aluminum range from 3% for primary aluminium up to 6% for some alloys. Researchers at the LUISS university in Rome have studied the impact of the metal duty exemption on consumers. In a paper published in 2019, they found that despite the fact that around half of the imports of the European Union were made up of duty-exempt material, the final price for everyone was 6%. Researchers found that producers are encouraged to "align" their prices at the highest level possible, i.e. the price paid in duty. In 2022, the Beer Institute conducted a follow-up study that confirmed this harsh economic truth. It found that, even after granting exemptions to key suppliers like Canada, beer manufacturers were still required to pay full import tariffs on their can metal. At that point, the cost had reached $1.4 billion. Import Dependency Harbor Aluminum's conclusion that first-stage processing companies have been the primary beneficiaries of tariffs up to this point reflects the imbalanced U.S. domestic supply chain. There are many semi-manufacturers in the country, but there are only four primary metal smelters that can supply them. According to the U.S. Aluminum Association, more than 164,000 people are employed directly in the aluminium industry. However, only 4,000 of them are involved in upstream metal manufacturing. These four smelters will produce 670,000 metric tonnes of metal by 2024 compared to the US consumption of 4.9 million. Imports totaled nearly 4.0 million tonnes, with 70% of that amount coming from Canadian smelters. It is hard to imagine that this dynamic will change anytime soon. Even if the idled smelting capacities of around 1 million tons per annum were to be brought back into production, a huge "if", given the age and cost structures of the four mothballed facilities, there would still be a large import dependency. Century Aluminum has been working on a new smelter for years, but the company still doesn't have a reliable source of power at a competitive price to fuel the electrolysis process. Tariffs will continue to affect the final price of American buyers as long as imports are needed to meet the domestic demand. Uncertainty in Trading As the markets discovered on Tuesday, Trump can raise tariffs at his whim. The fluctuating tariff rhetoric causes volatility in the CME U.S. Premium, which briefly rose to almost $1,000 per tonne over the LME Price on the threat to 50% tariffs on Canadian Metal before retreating after news of the truce between Ontario Premier Doug Ford and the United States. It may also lead to a significant realignment in global trading patterns. Prior spikes in U.S. aluminum premiums have pushed European premiums up. It is only logical that Europe, which also depends on primary metal imports to compete in the global marketplace for spare parts. This time it's different. While the U.S. has seen its premiums soar to new heights, European premiums are falling. It is counter-intuitive to say the least, given that European consumers will be losing Russian supplies over the next 12 months as part of the latest sanctions package. The European premium is more sensitive than ever to the North American market. This divergence indicates that some US suppliers are looking to avoid Trump’s tariff tantrums and re-direct sales to Europe. The European beer drinkers will benefit from this, as they can offer a can of aluminium to their American counterparts who are less fortunate.
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Next week, US oil executives will meet with Trump
The American Petroleum Institute, a leading industry group, announced on Wednesday that U.S. producers of oil will meet President Donald Trump next Monday. An industry source said that the topic of discussion included tariffs, trade, and exports for liquefied gas. The API, whose members include ExxonMobil, Chevron, and other oil giants, was instrumental in putting together the meeting. When asked about the meeting, API spokesperson Bethany Williams said: "We are grateful for the opportunity to discuss with President Obama and his team how American oil, natural gas and consumer support is driving economic growth, strengthening national security, and supporting consumers." API publicly opposes Trump's trade war against allies Mexico, Canada and the United States. Trump has imposed tariffs for imported crude oil from Canada and Mexico, but granted exemptions to producers who can show that they comply with the United States-Mexico Canada Agreement. API CEO Mike Sommers responded to the tariffs last month by saying, "Energy market are highly integrated and free and fair trading across our borders is crucial for delivering reliable, affordable energy to U.S. consumers." consumers." According to OpenSecrets, oil and gas companies donated $75 million to Trump’s presidential campaign, to the Republican National Committee, and to allied groups. The top oil and gas donors to Trump include billionaires Harold Hamm, Kelcy Warr of Energy Transfer Partners, and Jeffery Hildebrand from Hilcorp Energy Co. Data shows that they and their spouses contributed $15 million towards Trump's campaign. Reporting by Jarrett Renshaw, Ron Bousso and David Gregorio.
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Trump administration targets Biden electric vehicle regulations
The U.S. Environmental Protection Agency announced on Wednesday that it has begun efforts to reverse Biden's administration's vehicle emission rules, which would force automakers into building an increasing number of electric cars. This is just the latest of the Trump administration’s sweeping actions to undo prior efforts to encourage automakers to produce electric vehicles. The previous administration had rescinded a plan to have at least 50% new vehicles be EVs by 2030. The EPA The agency said that it would review its 2024 rules, which would reduce tailpipe emissions from passenger vehicles by almost 50% by 2032 as compared to projected levels for 2027. Ford Motor has backed the EPA's forecast that 35% to 56% of all new vehicles sold from 2030 to 2032 will need to be electrical to meet compliance. The EPA also said that it will be reviewing a regulation for 2022, which aims to dramatically reduce smog and soot emissions from heavy duty trucks. They claim the rule increases truck prices. The standards for 2022 are 80% stricter The rule is expected to result in a reduction of up to 2,900 premature deaths per year, as well as 1.1 million school days lost for children. It will also generate a net benefit of $29 billion annually. The EPA in Febuary Biden Administration's Congress will review the landmark California plan to stop selling gasoline-only cars by 2035 and possibly repeal it, but an agency of government has approved its approval. Last week The decision cannot be reviewed. Congress is separately considering Efforts to repeal EV Tax Credits Sean Duffy, Secretary of Transportation since January 1, revoked the fuel efficiency standards that Biden had set out to reduce fuel consumption for cars and trucks. He has also EV funding frozen for states charging. In June, the National Highway Traffic Safety Administration announced that it would increase Corporate Average Fuel Efficiency requirements for light duty vehicles to around 50.4 miles per galon (4.67 litris per 100km) by 2031. The current requirement is 39.1 mpg. Duffy directed NHTSA also to review rules for heavy-duty vans and pickup trucks through 2035. NHTSA stated in June that the rule for cars and trucks will reduce gasoline consumption by 64 billiard gallons by 2050, and emissions by 659 milliard metric tons. The report said that while some vehicles may be more expensive, consumers will save money on fuel and receive estimated net benefits worth $35.2 billion. (Reporting and editing by Chris Reese, Andrea Ricci and David Shepardson)
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At least 13 people have died and 20 others are injured in a bus crash that occurred in Bolivia
Local police reported that at least 13 people died and another 20 were injured after a bus veered from the road and crashed into a stone in Bolivia's western Potosi Region, they said. They attributed the deaths to heavy rains across the region. The crash on Wednesday is the latest in a string of fatal road accidents in South America. According to the Bolivian traffic police, at least 127 deaths and more than 200 injuries have been reported in 2025. The Transit Operative Unit recorded more than 15 000 accidents in 2024. This resulted in 1,480 fatalities, an average of four deaths per day. (Reporting and editing by Sarah Morland, Mark Porter and Monica Machicao)
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Brazil is mulling over all possible actions, but will not immediately retaliate to US steel tariffs
Brazil's Finance minister said on Wednesday the country will not immediately retaliate to tariffs imposed on imports of steel and aluminium by the United States, but instead seeks talks. The government noted that it would consider all options. The U.S. President Donald Trump increased tariffs on steel and aluminum imports, which took effect on Tuesday. This accelerated a campaign of reordering global trade to the U.S.'s benefit and drew swift retaliation by Canada and Europe. The Brazilian government issued a statement in which it expressed regret for the "unjustifiable' move of the U.S. citing the history of economic and political integration between the U.S. and Brazil. Brazil, the country that imports the most steel from the United States, has said it will take all measures possible to react in the coming weeks, including through the World Trade Organization. After a meeting in Brasilia with local steel industry members, Fernando Haddad, the Finance Minister told reporters that President Luiz-Inacio Lula Da Silva had ordered his economic team on Wednesday to engage the Trump administration. Haddad stated that "President Lula said to stay calm and noted that we have previously negotiated in conditions even less favorable than these current ones." Last week, Brazil's Vice-President Geraldo Alckmin held a call that his office described as "positive" with U.S. Secretary of Commerce Howard Lutnick about U.S. Tariff Policy. The two governments agreed to continue the dialogue. Brazil agreed in 2018 to a quota-system deal with the former U.S. Trump Administration, allowing the country to export semi-finished steel up to 3.5 millions tons to the U.S. Aco Brasil, the lobby for Brazil's steel industry, defended in a statement the system of quotas that was abolished on Wednesday when the new tariffs came into effect. Rui Costa said that Brazilian and U.S. officials will meet on Friday to try and reach an agreement on tariffs. Costa said that "reciprocity" is the standard diplomatic procedure, but that a decision final would only be taken after Friday's summit. Brazil's steel industry maintains a "mutually advantageous complementary" relationship with the United States. It is the third-largest importer of U.S. coal for steelmaking and the biggest exporter of semifinished steel to the United States.
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EPA tightens up regulation on US waterways
The U.S. Environmental Protection Agency (EPA) announced on Wednesday it would narrow the definitions of waters that could be federally regulated in order to comply with 2023 Supreme Court ruling. Republican legislators from agricultural states applauded this move. EPA Administrator Lee Zeldin stated that the agency would work to create a simple definition "that will stand the test of time and be durable." He said that the previous administration's definition "waters of the United States" placed unfair burdens on American citizens and increased the cost of doing businesses. This announcement is part of what Zeldin called a "ping-pong" of policy changes around the regulation and protection of "waters in the United States", which are protected by the 1972 Clean Water Act against pollutants such as fertilizers, pesticides, and mining waste. The EPA tried to expand its regulatory authority over wetlands and streams under the Obama and Biden Administrations. However, this was met with opposition from the industry, agriculture and Republican legislators who deemed it to be an overreach. The Sackett vs. EPA 2023 case established a standard that limits the ability of EPA and Army Corps of Engineers to regulate certain types of wetlands which do not connect to navigable waterways and streams. Shelley Moore Capito of West Virginia, the chairwoman of the Senate Environment Committee, said: "By delivering a framework which is both clear, and legally sound and refining key terms and rescinding previous vague and inconsistent guidelines, we bring predictability to all those who depend on clear, and workable, water regulations." Environmental groups have warned against a narrowing of the definition of waterways that are regulated. This would negatively impact on wetland conservation. Stacy Woods said that the Trump EPA has given the green light to industrial agriculture in order to pollute and drain valuable wetlands, which provide significant benefits to communities including flood protection and safe drinking water. Farm groups have supported a rollback of what they consider to be costly and burdensome regulations on water. Glenn "G.T." Thompson, chair of the House Agriculture Committee, said in a statement that this EPA action is "a crucial step to correct years of regulatory overreach, which has created uncertainty and confusion for rural communities, farmers and ranchers." Thompson, the chair of House Agriculture Committee said in a press release. Zippy Duvall said that the American Farm Bureau Federation had listened to the concerns of farmers in a press release.
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Continental Resources, a US-based producer, will help Turkey develop its shale gas fields
On Wednesday, Turkish Energy minister Alparslan Bayraktar announced on the social media platform X that TPAO, Turkey's national oil company, had signed a joint-venture agreement with U.S. producer Continental Resources for the development of shale deposits in Diyarbakir Basin. This cooperation will contribute greatly to our goal to bring Turkiye’s oil and natural gas resources into our economy. "I hope that this agreement will benefit all parties, as it opens up a new phase in Turkiye's exploration," he wrote in the blog. The Turkish oil and gas industry is not very large. Continental Resources CEO Doug Lawler stated in an email that "we recognize significant opportunities to further develop both in the U.S. We are very excited to work with TransAtlantic, Turkey Petroleum and other energy companies to develop innovative solutions to unlock the full potential of Turkey's resources. TransAtlantic Petroleum is developing the Selmo Field in Turkey, and executing a drilling program horizontally in eastern Turkey. Harold Hamm, founder of Continental Resources, warned on Wednesday that U.S. crude oil production was beginning to plateau. Reporting by Arathy S. Somasekhar, Writing by Liz Hampton and Editing by Marguerita C. Choy and Ni. Williams
Microsoft's VP of corporate affairs says that US wind and solar power still has room for growth in data centers.
Microsoft Vice President for Energy Bobby Hollis said at the CERAWeek conference in Houston, on Wednesday, that the U.S. still has a lot of room to expand wind and solar power development, especially in the Midwest wind-corridor and the sunny southwest.
The rapid proliferation of Big Tech’s energy-intensive cloud and AI data centers is shaking the stagnant U.S. electricity industry. It has pushed the country's consumption to a new high and raised questions about the future of carbon-free renewable power.
Hollis said, "We think that there is still a long way to go before renewables are a significant part of the mix where it makes sense."
Microsoft is currently expanding one of its largest data centers in the world, and has plans to expand to a total of ten.
Invest $80 billion
In the effort alone this year, it will require vast amounts of electricity.
Solar and wind energy is intermittent. It only produces power when the sun shines or the wind blows. This is a problem for the data centers, which must operate around the clock.
Natural gas is cheap and abundant, but it produces emissions which contribute to global climate change.
The most attractive option
The transition to renewable energy is led by the big power users.
Hollis said, "Let's just add more gas as needed." His company has obtained more than 30 gigawatts in renewable energy globally. "Before getting to that point, let's ensure that we have added renewables."
He said that the mid-section of America, which has strong and consistent winds, was ripe for the development of wind-powered data centers. Solar power could be expanded in sunny Southeast, he added. (Reporting and editing by David Gregorio; Laila Kearney)
(source: Reuters)