A convenience store mega-merger is in the works

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and a mega-merger might be coming to the convenience store industry.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're

00:03watching on the street today. Wall Street built on its recent gains ahead of a

00:07busy week for retail earnings. Estee Lauder topped analyst forecasts but

00:12warned customers are even pulling back on quote affordable luxuries like

00:17lipstick and perfumes during the era of higher prices. The cosmetics, beauty and

00:22skincare company lowered financial forecasts for the year. Investors will

00:26hear from Lowe's on Tuesday. In other business headlines, the parent of 7-Eleven

00:31convenience stores is in talks to do a buyout deal with Canada's

00:35alimentation Couchetard. The value of the potential deal was not revealed but

00:407-Eleven and I, parent of 7-Eleven, has a market value of more than 38 billion

00:45dollars while Couchetard has a market value of 58 billion dollars. 7-Eleven's

00:50parents said the board has set up a committee and quote consistent with its

00:55obligation to act in the best interest of its shareholders and other

00:58stakeholders of the company. The special committee intends to conduct a prompt,

01:03careful and comprehensive review of the proposal. The deal would create a behemoth

01:08in the global convenience store world at a time when Americans are watching their

01:12weights and watching their pennies. Alimentation Couchetard has more than

01:1616,000 Circle K and Couchetard locations throughout North America and Europe.

01:22Meanwhile, the conglomerate that includes 7-Eleven has 85,000 stores in

01:27the United States and Asia. North America is responsible for 75% of the company's

01:3381 billion dollar annual revenue. That'll do it for your daily briefing from the

01:38New York Stock Exchange. I'm Conway Gittins with the street.

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