Welcome to The Globe and Mail’s business and investing news quiz. Join us each week to test your knowledge of the stories making the headlines. Our business reporters come up with the questions, and you can show us what you know.
This week: The Japanese parent of 7-Eleven announced plans to fight back against aggressive takeover effort by Quebec-based Alimentation Couche-Tard Inc. Seven & i Holdings Co. will shed much of its non-convenience business and change its name to 7-Eleven Corp. Non-core businesses – including supermarkets and specialist chains focused on household and baby goods – will move to a new holding company, which will bring in outside investment ahead of a future IPO. But Couche-Tard doesn’t seem dissuaded by the counter offensive! And speaking of tenacity, the search for the investor of Bitcoin has identified a new leading candidate. But while Couche-Tard and crypto enthusiasts don’t know when to say die, one Las Vegas institution did exactly that.
c. US$47-billion. Couche-Tard is now offering about US$47-billion for Seven and i Holdings Co., parent of the convenience store giant. However, Seven and i has rebuffed the Canadian offer and announced several moves that it says will boost shareholder value without the need for new management. The proposed deal is seen as a key indicator of how open the traditionally closed Japan stock market is to foreign takeovers.
a. Constrain the growth of its U.S. retail banking operations. TD has agreed to cap the assets of its U.S. retail banking business. An asset cap is a severe and rarely imposed penalty on misbehaving banks. It means TD’s U.S. retail operation will be constrained in its ability to make new loans since loans are considered assets. However, other units, such as TD Securities, will still be able to expand their balance sheets and lend to large corporate clients.
c. The Tropicana, famed for its underworld connections, was once known as “the Tiffany of the Strip” for its opulence. Its demolition helps clear the way for a new US$1.5-billion baseball stadium for the relocating Oakland Athletics.
d. Mali’s military government is seeking at least US$512-million in back taxes and fines from Barrick in part of the country’s broader move to collect more money from foreign miners in the country.
a. The company’s algorithm. The compensation change, which Uber is calling upfront pricing, will allow drivers to see their expected earnings in advance of a trip beginning. The upfront price will incorporate a myriad of factors such as time of day, day of the week, and supply and demand, according to Uber.
b. A Canadian cryptography consultant. The documentary, Money Electric: The Bitcoin Mystery, points to Peter Todd, a Canadian cryptography consultant, as the mysterious Satoshi. Mr. Todd denies it.
d. Nvidia. The U.S. Department of Justice upped the stakes in a long-running court battle this week when it said it is considering asking the judge to order the breakup of Google-parent Alphabet. Last month, the department filed a lawsuit accusing Visa of suppressing competition by threatening merchants with high fees and paying off potential competitors. And in May, it launched a suitlaunched a suit against Live Nation Entertainment, parent of Ticketmaster, saying it “suffocates its competition.” How about Nvidia? The DOJ has sent the chipmaker subpoenas demanding information, but it has yet to file suit.
b. Lithium. Rio Tinto is buying Arcadium Lithium, a U.S.-based lithium producer with operations in Quebec. Rio is paying a large premium for Arcadium despite a recent crash in the price of lithium.
d. Canadian Natural Resources says the deal will boost its production by around 9 per cent in 2025 and also save the company around $40-million a year in expenses.
d. In the neighbourhood of 25 per cent. As of Thursday, the CSI 300 index of large stocks listed in Shanghai and Shenzhen had gained 25.5 per cent over the preceding month.
a. Air Canada pilots. The new contract follows a previous 10-year deal that gave pilots annual raises of 2 per cent.
b. Up 5.3 per cent. S&P 500 earnings are estimated to have increased 5.3 per cent over the year-ago quarter, down from a second-quarter gain of 13.2 per cent.