Federal Trade Commission’s Post

Did you hear the news? The FTC has challenged Tempur Sealy’s acquisition of Mattress Firm, alleging it will stifle competition and harm consumers. This high-stakes battle could have significant implications for the mattress industry. Want to learn more about the potential impact on retailers and consumers? Read our full article 👉 https://lnkd.in/egNBx-Hy #FTC #TempurSealy #MattressFirm #merger #competition #retail #mattressindustry

The two largest grocery-only retailers in the U.S., #kroger and #albertsons, have been sued by the #ftc to stop them from merging. I believe the FTC will lose and the two companies will eventually combine. (Predicting the outcome of legal processes is a risky business. But I also know that the two companies need to combine to survive.) I just wrote an article about it on Forbes. https://lnkd.in/gdCsGuRn #supermarkets #supermarket #grocery #mergersandacquisitions #antitrust #forbes #tre

Seven & i Holdings is set to ramp up its #conveniencestore business in North America through #mergers and #acquisitions. It is also gearing up for an initial public offering of its supermarket segment, including Ito-Yokado. 🛒💼 The retail giant plans to launch the #IPO of its supermarket arm, despite its current losses, as part of the approved action plan. Additionally, Seven & i Holdings is doubling down on its global convenience store business, with plans for "more aggressive" investments in the pipeline. 🚀🌎 7-Eleven #Japan #growth https://lnkd.in/dj9my2uV

Is JB Hi-Fi’s recent agreement to acquire a 75% stake in E&S Trading (e&s) a good acquisition? JB Hi-Fi’s agreed price of $47.8 million for 75% of e&s values the entire company at around $63.7 million. E&S’s FY24 revenue of $230 million and EBITDA of $7 million (a low 3% Ebitda margin), implies JB is paying a premium multiple of 9.1x. When compared to JB’s own trading multiple that hovers around 8-10 (similarly to Harvey Norman), 9.1x for e&s seems high. But, this isn’t just about JB Hi-Fi growing in size—it’s about entering the premium appliance market, which complements their existing product range and vice versa. Unlocking potential synergies in JB Hi-Fi’s infrastructure, particularly in supply chain and technology, should enhance e&s’s operations and profitability. Additionally, JB Hi-Fi’s proven national presence offers a clear path for expanding e&s beyond Victoria. With the current stakeholders of e&s holding 25% (aligning the interests) the upside for them should also be positive as the business scales nationally. My View - the makings of a great acquisition 👍 As a customer of both brands that recently renovated, I can definitely see alignment by JB taking the reigns and bringing in the customer markets of: New Build & Renovation market into the JB house. #mergers #acquisitions https://lnkd.in/gkGef2C8

Tempur Sealy Int'l: FTC Moves to Block Tempur Sealy’s Acquisition of Mattress Firm. Vote was 5-0 $TPX #merger #FTC TPX responds, "We are confident in the procompetitive rationale for this transaction and look forward to presenting the many benefits of the combination. We believe that a successful litigation process can be completed in the coming months, which would allow us to close the transaction in late 2024 or early 2025." Tempur Sealy intends to conduct a public conference call shortly after the FTC's complaint is publicly available. The Commission issued an administrative complaint and authorized a lawsuit in federal court to block the acquisition, alleging that Tempur Sealy—the world’s largest mattress supplier and manufacturer—will have the ability and incentive to suppress competition and raise prices for mattresses for millions of consumers once it acquires Mattress Firm. The proposed vertical acquisition would merge Tempur Sealy’s manufacturing and supply operations with Mattress Firm’s vast retail footprint, giving the combined company enormous power at multiple parts of the mattress supply chain. Multiple deal documents show that Tempur Sealy plans to limit rivals’ access to Mattress Firm’s nationwide network of stores to harm competition. Competing mattress suppliers—which are predominately American manufacturers employing thousands of workers—are likely to lose access to the single most important retail channel, significantly impairing their ability compete and potentially leading competing suppliers to reduce output, close factories, and lay off workers.

🔨 Metcash Doubles Down Hardware Expansion with New Acquisitions! 💰Metcash is becoming a power in the Australian hardware supply chain by acquiring Alpine Truss and Bianco Construction Supplies as part of a $558m mega-deal that includes Superior Foods. 🪵These acquisitions significantly expand Metcash’s foothold in the timber frame and truss market, bolstering its position against giants like Bunnings and enhancing its offerings across the food, liquor, and hardware sectors. 🚀 Strategic Synergy: Metcash's CEO, Doug Jones, emphasised the strategic alignment and synergy these acquisitions bring to their broader hardware strategy. With an eye on network expansion, market share increase, and broader customer offerings, these moves are expected to generate cost savings of $19 million annually, showcasing Metcash's disciplined capital allocation and growth trajectory. 🔸 Project Highlights: 1️⃣ Diversification and Growth: Integrating Alpine Truss and Bianco Construction Supplies into Metcash's portfolio diversifies its revenue streams and adds resilience to its business model. 2️⃣ Competition and Market Share: This expansion sets Metcash on a direct path to challenge Bunnings’ dominance in the hardware and DIY market, particularly in the commercial "wholesale" sector. 3️⃣ Sustainability and Expansion: By acquiring companies with a strong foothold in timber-based building supplies, Metcash is not just expanding its network but also investing in a sustainable future. 🤔 #questionforgroup: How can traditional retailers like Metcash effectively compete with industry giants through strategic acquisitions? What role does sustainability play in shaping the future of construction and hardware retail? 🏗️ With the construction industry evolving rapidly, Metcash’s latest acquisitions signify a significant leap towards integrating sustainability with growth, setting new standards for innovation in the hardware retail sector. 🔗 Dive deeper into Met Cash's strategic acquisitions and its impact on Australia’s hardware industry: https://lnkd.in/g8A8q-sW #metcash #mitre10 #iga #timber #hardware #timberconstruction #masstimber #construction #timberframe #framing #timberindustry #bunnings #retailexperience #expansion #constructionsupplies #retail #merchants #australia #buildingmaterials #greenbuilding

This merger is starting to feel like the story that takes a decade, not the story of the year. Lost time, and focus, may be Kroger’s biggest expense in this merger. Whether the deal closes or not, the Kroger executive team will have spent years focused on the merger, and winning the court cases, and not innovation and customer experience. Hopefully, both chains are still relevant when the final decision is made. Interested in keeping this conversation going? Drive Wheel is forming a Kroger Sales Peer Group and we're saving a space for you! #drivewheel #peergroups #kroger #albertsons #mergers #ftc #plma #discussions

🔍 The FTC's move to block Tempur Sealy's $4B acquisition of Mattress Firm puts a spotlight on the complexities of vertical mergers between two firms at different levels of the supply chain. The anticompetitive issue is that the deal could harm competition by either shutting out other premium mattress suppliers from Mattress Firm stores altogether or giving them fewer opportunities to display products and lower sales associate commissions on non-Tempur Sealy items. This shows how mergers are closely watched for their impact on competition, especially when they affect access to distribution channels and retail competition. This case will shape how courts view such deals, impacting competition in retail. Understanding these legal nuances is crucial for businesses navigating growth and regulatory challenges in the retail sector. #FTC #Antitrust #VerticalMergers #LokiGroup

When discussing the state of the convenience store industry in 2023, it’s impossible to not focus on mergers and acquisitions. This year brought several large-scale deals that dominated headlines and altered the competitive landscape among c-store retailers. According to one expert, “the stars aligned” this year as companies looked to offset high operating costs driven by inflation, digital growth and labor challenges. Here’s a look at the biggest deals from 2023. https://lnkd.in/et9PpvkC

7-Eleven Receives $38 Billion Buyout Offer from Couche-Tard Canadian rival's proposal could reshape Japan's corporate landscape. Shockwaves in Japan as 7-Eleven Faces Foreign Acquisition and Shares Surge 23% Following Buyout Bid Announcement. Japan's 7-Eleven, a cornerstone of the country's convenience store landscape, has received a preliminary buyout offer from Canadian company Alimentation Couche-Tard, valued at approximately $38 billion. This potential acquisition could become the largest foreign takeover of a Japanese company in history, sending shockwaves through Japanese society due to 7-Eleven's cultural significance. Company Valuations 7-Eleven (Seven & i Holdings): As of August 16, 2024, Seven & i Holdings had a market capitalization of approximately ¥5 trillion (around $36 billion). Following the announcement of the buyout proposal, shares surged by 23%, raising its market cap to about ¥5.6 trillion (approximately $38 billion). Alimentation Couche-Tard: The Canadian company, which operates the Circle K brand, has a market valuation of approximately $57 billion. Couche-Tard manages over 16,700 stores globally, primarily in North America. Heirs and Promoters' Net Worth The family of the late Masatoshi Ito, who was a significant figure in 7-Eleven's history, holds an 8.1% stake in Seven & i, valued at around $3 billion. Ito's net worth was estimated at $4.4 billion at the time of his passing. In contrast, Alain Bouchard, the founder and chairman of Couche-Tard, has a personal net worth of approximately $7.9 billion. Possible Outcomes as perceived by SYNDICATE CAPITAL The proposed acquisition is expected to face significant antitrust scrutiny, particularly in the United States, where overlapping store locations could raise competitive concerns. Analysts predict that regulatory bodies may require divestitures to address these issues. If the deal proceeds, the combined entity would control about 12.3% of the U.S. convenience store market, significantly increasing Couche-Tard's footprint. While the board of Seven & i has established a special committee to evaluate the offer, no decision has been made regarding acceptance or further negotiations. The outcome of this proposal could not only reshape the future of 7-Eleven but also influence the broader landscape of the global convenience store industry. Should the acquisition be finalized, it would mark a pivotal moment in Japan's corporate history and potentially open the door for further foreign investments in the country. #7Eleven #CoucheTard #Buyout #ForeignAcquisition #JapanBusiness #CorporateTakeover #ConvenienceStore #MarketCapitalization #Antitrust #Investment #GlobalBusiness #RetailIndustry #CulturalIdentity #MergersAndAcquisitions #BusinessNews #StockMarket #JapaneseEconomy #CorporateStrategy #AlimentationCoucheTard #SevenAndiHoldings