Takeover trouble in the world of convenience stores

Summary

Marketplace Morning Report Summary

Episode: Takeover Trouble in the World of Convenience Stores
Release Date: July 17, 2025
Host: Liana Byrne
Produced by: Marketplace and BBC World Service

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1. Takeover Trouble in the World of Convenience Stores

Timestamp: [01:03] – [01:59]

The episode opens with a significant update on the global convenience store industry. Liana Byrne introduces the story of Canadian firm Couchetar, renowned for its Circle K brand, deciding to withdraw from a $47 billion acquisition bid to purchase Japan's 7i, the parent company of 7-Eleven.

Morpho Garty, representing the BBC World Service, provides deeper insights:

“Had the deal gone through, it would have combined the world's biggest convenience store chain, Seven Eleven, with the Canadian Circle K stores to create a global mini mart giant with more than 100,000 stores around the world." [01:26]

He further elaborates on the implications of the failed takeover:

“Seven and I said they were disappointed and not surprised by their rival's decision, and that they also disagreed with the numerous mischaracterizations." [01:39]

The aborted deal is highlighted as a litmus test for Japan's stance on foreign takeovers, revealing a current reluctance within corporate Japan to embrace such large-scale acquisitions.

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2. Global Economic and Business Updates

Timestamp: [01:59] – [04:42]

Following the takeover news, Byrne transitions to a series of key economic indicators and business updates:

• China's Power Demand: A new record of 1.5 billion kilowatts was reached amid a severe heatwave, prompting a surge in air conditioning usage. Notably, 50% of the grid's power was sourced from solar energy, underscoring China's commitment to renewable resources.

• TSMC's Profits: Taiwan Semiconductor Manufacturing Company (TSMC), pivotal in supplying chips to giants like Apple and Nvidia, reported a 60% profit increase to $13.5 billion last quarter, driven by the booming AI sector.

• Bitcoin's Market Movement: Bitcoin surged to approximately $120,000 this week before experiencing a slight decline. To delve into the factors behind this volatility, Marketplace hosts Susannah Streeter from Hargreaves Lansdowne discuss the sustainability of Bitcoin's recent highs.

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3. Cryptocurrency Market Analysis

Timestamp: [02:42] – [04:42]

Susannah Streeter, Head of Money and Markets at Hargreaves Lansdowne, provides her expert take on Bitcoin's fluctuations:

“This really was flagged as crypto week because of course, we had that legislation going through Congress really aimed at cementing bitcoin in the financial system, giving it a greater regulatory framework." [02:49]

She identifies multiple drivers behind Bitcoin's rise:

• Legislative Support: New laws aiming to integrate Bitcoin more firmly into the financial system.
• Economic Concerns: Long-term worries about the mounting U.S. debt and the weakening dollar.
• FOMO (Fear of Missing Out): Increased speculative trading as more investors jump in during price climbs.

When questioned about Bitcoin's potential as a safe haven asset like gold or silver, Streeter remains cautious:

“It is still so volatile, general trading becomes more stable, its use as a mainstream store of wealth will always come into question." [04:02]

She advises:

“You might want to hold it a small part of your portfolio if you're a vessel speculator. But you really shouldn't be holding it if you haven't got money you can afford to lose." [04:12]

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4. Rising Beef Prices and the U.S. Cattle Industry

Timestamp: [04:56] – [07:24]

Shifting focus to the U.S. economy, Byrne introduces a segment on the escalating cost of beef, impacting both restaurants and consumers during the summer grilling season.

Monica Miller reports on the situation:

“A porterhouse steak for two is listed on the menu at an eye-watering $165." [05:06]

William Deagle, owner of Uncle Jack's Steakhouse, discusses his menu adjustments in response to beef price hikes:

“I evolved my menu right, evaluated the menu to have more burger cuts, more steak sandwich cuts." [05:24]

Key factors contributing to rising beef prices include:

• Low Cow Inventory: The U.S. faces its lowest cattle inventory in over 70 years due to unprofitable farming conditions.
• Economic Pressures: High living expenses, droughts, and increased grain prices have deterred farmers from expanding herds or have led to farm closures.

Michael Swanson, Agricultural Economist at Wells Fargo, explains:

“They mean when you don't make money, you stop doing what you do or you do less of it. Simple as that." [06:07]

Additionally, the U.S. is importing more beef than it exports, primarily sourcing ground beef from countries like Australia and Brazil, where large cattle herds graze naturally:

“The supplemental market, about 15-20%, depending on how you want to calculate it." [06:12]

Despite high prices, Americans remain the world's largest consumers of beef, suggesting potential for a resurgence in cattle farming as high prices typically incentivize increased production:

“There's a lot more nice pickup trucks on the road today in cattle country." [07:06]
“High prices usually bring more production." [07:06]

However, the industry faces challenges with consolidation, as 85% is controlled by a few large companies, and the job outlook for cattle farmers remains bleak.

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Conclusion

This episode of Marketplace Morning Report delivers a comprehensive overview of significant global business developments, from the halted takeover in the convenience store sector to critical updates in energy consumption, semiconductor profits, cryptocurrency trends, and rising beef prices affecting both consumers and the agricultural industry. The discussions are enriched with expert insights and real-world implications, providing listeners with an in-depth understanding of current economic dynamics.

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Note: Advertisements and promotional segments have been excluded from this summary to focus solely on the episode's main content.

Transcript

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[Liana Byrne]

There's Takeover Trouble in the World of Convenience Stores hello, this is the Marketplace Morning Report, and we're live from the BBC World Service. I'm Liana Byrne. Good morning. So the Canadian firm Couchetar, best known for Circle K, is walking away from a $47 billion bid to buy Japan's 7i, the parent company of 7Eleven. Here's the BBC's MorphoGarty.

[Morpho Garty]

Had the deal gone through, it would have combined the world's biggest convenience store chain, seven Eleven, with the Canadian Circle K stores to create a global mini mart giant with more than 100,000 stores around the world. Seven and I said they were disappointed and not surprised by their rival's decision, and that they also disagreed with the numerous mischaracterizations. The proposal was widely seen as a litmus test of corporate Japan's willingness to accept foreign takeovers, which for now, there seems to be little appetite for.

[Liana Byrne]

More fogerty there. Now let's the numbers. China's power demand just hit a record 1.5 billion kilowatts as blistering heat wave pushes people to crank up the aircon. Half the grid's power came from solar. Meanwhile, tsmc, the Taiwanese chip giant behind Apple and Nvidia, just posted a 60% jump in profits, riding the AI boom to $13.5 billion last quarter. Okay, Bitcoin hit highs this week around $120,000 and has since slipped back. But you might be wondering what's behind the latest rise and whether it's sustainable. To explain, here's Susannah Streeter, head of money and markets at Hargreaves Lansdowne. Hello.

[Susannah Streeter]

Hello. Great to be with you.

[Liana Byrne]

Susanna. You know, we've seen bitcoin hit record highs this week, but what's fueling this one?

[Susannah Streeter]

Well, this really was flagged as crypto week because of course, we had that legislation going through Congress really aimed at cementing bitcoin in the financial system, giving it a greater regulatory framework. So there's been a lot of excitement over that. There is also support for bitcoin because of longer term concerns about just the debt mounting being built up in the United States. And some watchers and enthusiasts for bitcoin see this as a long term weakening pressure on the dollar. And that's also given more to crypto. And then of course, you have this fomo, this fear of missing out. And once you see big climbs in the price of coins and tokens, bitcoin in particular, lots more speculators jump on the bandwagon and that pushes the price even higher.

[Liana Byrne]

Yeah, the FOMO premium maybe you might call it. But I mean, some people are even saying it's a safe haven now for investors like gold or silver. Could you go that far?

[Susannah Streeter]

No. I mean, even though it's not hard to make a case that bitcoin's current rally carries lasting momentum, it is still so volatile, general trading becomes more stable, its use as a mainstream store of wealth will always come into question. There's also geopolitical flare ups, you know, big sales. So really the best advice is, you know, you might want to hold it a small part of your portfolio if you're a vessel speculator. But you really shouldn't be holding it if you, if you haven't got money, you can afford to lose.

[Liana Byrne]

Good advice. Susanna Streeter, head of money and markets at Hargreaves Lansdowne. Thank you so much for joining us on Marketplace.

[Susannah Streeter]

Thank you for having me.

[Liana Byrne]

Americans are firing up their grills this summer, but they're getting singed by the cost of beef. Prices continue to rise with some cuts reaching all time highs. Monica Miller went to find out why.

[Monica Miller]

Uncle Jack's Steakhouse in New York is a known quantity in certain circles. There are framed pictures at the entrance of famous patrons. The owner calls it his wall of fame.

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William Deagle, Uncle Jack's owner, entrepreneur, aka the Steak Doctor.

[Monica Miller]

A porterhouse steak for two is listed on the menu at an eye watering $165. But these days, an increase in beef prices has Mr. Deagle offering new menu items that most customers can afford.

[Oregon Lottery Representative]

I evolved my menu right, evaluated the menu to have more burger cuts, more steak sandwich cuts. So right now we have an Uncle Jack's steak sandwich. I've always had it, but now I have a French dip because a lot of people can't afford the steak. So they're choosing down to still get the meat experience.

[Monica Miller]

Hamburgers are popular items on home grills during the summer. The latest figures show the average pound of ground beef in May was close to $6, a 16% increase compared to last year. One reason why beef prices are so high is the US has the lowest cow inventory in over 70 years. The business wasn't profitable, according to Michael Swanson, agricultural economist for Wells Fargo.

[Michael Swanson]

They mean when you don't make money, you stop doing what you do or you do less of it. Simple as that.

[Monica Miller]

High living expenses, droughts, and an increase in grain prices are some reasons that have discouraged farmers from raising more cattle or have gone out of business altogether. The US Sells high end cuts like steak to the international market, but it primarily buys what's considered hamburger meat or what's sometimes called grind from abroad. Right now, the US Imports more beef than it exports when we go to.

[Michael Swanson]

The supplemental market, about 20% or 15%, depending on how you want to calculate it. On the grind side, Australia, Brazil, places like that. Why? Because they have large cattle herds that are out on the grass walking around. Not really to our taste for steaks, but certainly make a good hamburger.

[Monica Miller]

Mr. Swanson says tariffs will have an impact on prices. But despite the sticker shock at the checkout, Americans are the world's largest consumers of beef. Cattle farming could see a resurgence in.

[Michael Swanson]

The US but high prices usually bring more production. There's a lot more nice pickup trucks on the road today in cattle country.

[Monica Miller]

Roughly 85% of the industry is run by a few large companies and the job outlook for cattle farmers is declining.

[Liana Byrne]

Monica Miller with that report. And I'm Liana Byrne with the Marketplace morning report from the BBC World Service.

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