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7-Eleven owner rejects initial takeover bid from Canadian rival

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The Japanese owner of 7-Eleven said Friday it had rejected a takeover bid from Canadian retail giant Alimentation Couche-Tard, saying the proposal “grossly undervalues” the company.

The proposed purchase of Seven & i Holdings would be the biggest ever foreign takeover of a Japanese firm and combine 7-Eleven, Circle K and other brands across Asia, North America and Europe.

As the world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally.

Although the brand began in the United States, since 2005 it has been wholly owned by Seven & i.

A letter from the Seven & i board to Alimentation Couche-Tard (ACT) said it was open to “engaging in sincere discussions should you put forth a proposal that fully recognises our standalone intrinsic value”.

“We do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction,” it said.

ACT operates more than 16,700 outlets in 31 countries and territories.

Its purchase of Seven & i would be the biggest ever foreign takeover of a Japanese firm and create an international convenience store behemoth combining 7-Eleven, Circle K and other brands across Asia, North America and Europe.

Seven & i said ACT had offered $14.86 per share in cash, which roughly matches its market value of $39 billion.

But the board’s letter called the proposal “opportunistically timed” and said it “grossly undervalues our standalone path and the additional actionable avenues we see to realise and unlock shareholder value”.

It also raised regulatory concerns.

“Your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from US competition law enforcement agencies,” it said.

A quarter of 7-Eleven stores are found in Japan where they are a beloved institution, selling everything from concert tickets to pet food and fresh rice balls.

Seven & i Holdings’ other businesses include a major supermarket operator, restaurant chain Denny’s, and Tower Records — a once-popular US record store that went bankrupt.

Seven & i has reportedly asked the Japanese government to designate parts of the company as “core”, which would make a takeover more difficult.

Brands with the “core” rating in Japan include manufacturers in the nuclear, space, rare earths and chip industries, as well as cybersecurity and infrastructure operators.

The Canadian firm, however, is confident that it can have its way.

CEO Brian Hannasch told an earnings briefing in New York on Thursday that Couche-Tard could “even consider a higher leverage if needed”, indicating it has the capacity to raise more funds, according to Nikkei Asia.

“We have the solid and robust balance sheet,” Nikkei quoted Hannasch as saying.

Shares in Seven & i were down 1.9 percent in Tokyo on Friday.

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Economy

EU Court to Rule on Google’s Appeal of €1.49bn Fine

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On Wednesday, an EU court will decide on Google’s appeal against a €1.49 billion ($1.65 billion) fine imposed by the European Union. This comes just a week after the tech giant faced a major legal defeat over a larger penalty.

Regulators worldwide are ramping up scrutiny on Google’s parent company, Alphabet, as legal trials and investigations continue to target the multinational giant. Last week, the European Union secured a legal victory when its top court upheld a 2017 fine of €2.42 billion against Google for abusing its dominant position by promoting its own comparison shopping service.

The European Commission has led the charge in cracking down on big tech abuses, imposing a total of €8.2 billion in fines on Google between 2017 and 2019 for antitrust violations.

The latest case, set for a ruling on Wednesday, concerns the third of those fines—worth €1.49 billion—stemming from Google’s misuse of its dominance through the AdSense advertising service. The Luxembourg-based General Court is scheduled to release its decision on Google’s appeal shortly after 0730 GMT.

Google has requested the court to either fully or partially annul the European Commission’s decision, or at least reduce the fine.

Ongoing Legal Battles
The EU’s actions against Google are far from over. The tech giant is also contesting a €4.3 billion fine levied in 2018 for placing illegal restrictions on Android smartphones to boost its internet search business. This remains the largest antitrust penalty ever imposed by the EU. While the General Court reduced the fine slightly to €4.1 billion in 2022, it largely upheld the EU’s arguments that Google had violated competition laws. Google has since appealed this ruling to the European Court of Justice.

Meanwhile, the EU has strengthened its regulatory arsenal with the introduction of the Digital Markets Act (DMA), designed to prevent antitrust violations before they occur. This law provides clear guidelines on what tech companies can and cannot do online, aiming to correct behaviors proactively rather than reactively issuing fines.

Google, Meta (Facebook’s parent company), and Apple are currently under investigation under the DMA.

Global Pressure Mounts
Google is also facing mounting legal challenges in the US. Last week, it entered its second major antitrust trial within a year, with the US government accusing it of monopolizing ad technology. This follows a US judge’s August ruling that declared Google’s search business an illegal monopoly, sparking fears that the company may face a potential breakup.

Globally, Google’s advertising technology is under intense scrutiny, with British regulators accusing the company of market dominance earlier this month. The EU reached similar conclusions last year, recommending that Google divest its ad tech business. Google has the opportunity to respond to these charges before the final decisions are made.

Despite the growing regulatory pressure, Alphabet reported revenue from online ad searches totaling $48.5 billion for the second quarter of this year.

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AI is ‘accelerating the climate crisis,’ expert warns

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If you care about the environment, think twice about using AI.

Generative artificial intelligence uses 30 times more energy than a traditional search engine, warns researcher Sasha Luccioni, on a mission to raise awareness about the environmental impact of the hot new technology.

Recognized as one of the 100 most influential people in the world of AI by the American magazine Time in 2024, the Canadian computer scientist of Russian origin has sought for several years to quantify the emissions of programs like ChatGPT or Midjourney.

“I find it particularly disappointing that generative AI is used to search the Internet,” laments the researcher, who spoke with AFP on the sidelines of the ALL IN artificial intelligence conference, in Montreal.

The language models on which the programs are based require enormous computing capacities to train on billions of data points, necessitating powerful servers.

Then there’s the energy used to respond to each individual user’s requests.

Instead of simply extracting information, “like a search engine would do to find the capital of a country, for example,” AI programs “generate new information,” making the whole thing “much more energy-intensive,” she explains.

According to the International Energy Agency, the combined AI and the cryptocurrency sectors consumed nearly 460 terawatt hours of electricity in 2022 — two percent of total global production.

– Energy efficiency –

A leading researcher on the impact of AI on climate, Luccioni participated in 2020 in the creation of a tool for developers to quantify the carbon footprint of running a piece of code. “CodeCarbon” has since been downloaded more than a million times.

Head of the climate strategy of startup Hugging Face, a platform for sharing open-access AI models, she is now working on creating a certification system for algorithms.

Similar to the program from the US Environmental Protection Agency that awards scores based on the energy consumption of electronic devices and appliances, it would make it possible to know an AI product’s energy consumption in order to encourage users and developers to “make better decisions.”

“We don’t take into account water or rare materials,” she acknowledges, “but at least we know that for a specific task, we can measure energy efficiency and say that this model has an A+, and that model has a D,” she says.

– Transparency –

In order to develop her tool, Luccioni is experimenting with it on generative AI models that are accessible to everyone, or open source, but she would also like to do it on commercial models from Google or ChatGPT-creator OpenAI, which have been reluctant to agree.

Although Microsoft and Google have committed to achieving carbon neutrality by the end of the decade, the US tech giants saw their greenhouse gas emissions soar in 2023 because of AI: up 48 percent for Google compared to 2019 and 29 percent for Microsoft compared to 2020.

“We are accelerating the climate crisis,” says Luccioni, calling for more transparency from tech companies.

The solution, she says, could come from governments that, for the moment, are “flying blindly,” without knowing what is “in the data sets or how the algorithms are trained.”

“Once we have transparency, we can start legislating.”

– ‘Energy sobriety’ –

It is also necessary to “explain to people what generative AI can and cannot do, and at what cost,” according to Luccioni.

In her latest study, the researcher demonstrated that producing a high-definition image using artificial intelligence consumes as much energy as fully recharging the battery of your cell phone.

At a time when more and more companies want to integrate the technology further into our lives — with conversational bots and connected devices, or in online searches — Luccioni advocates “energy sobriety.”

The idea here is not to oppose AI, she emphasizes, but rather to choose the right tools — and use them judiciously.

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China’s Guangxi Inaugurates Communication Centre to Deepen ASEAN Relations

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In a move aimed at enhancing global communication and cooperation with ASEAN, the Guangxi International Communication Centre was inaugurated on September 6 in Nanning. This initiative is under the leadership of the Publicity Department of the Party Committee of the Guangxi Zhuang Autonomous Region and is spearheaded by Guangxi Daily in collaboration with Guangxi Radio and Television.

Chen Yijun, a member of the Standing Committee of the Party Committee of Guangxi Zhuang Autonomous Region, along with other key figures including Liu Weiling, Deputy Editor-in-Chief of China Daily, and Yu Yunquan, Deputy Director of China Foreign Languages Administration, were present. Delegates from ASEAN nations, as well as leaders from media houses in Cambodia, Laos, Vietnam, Hong Kong, and Macao, also attended the event.

Guangxi serves as a critical gateway for China’s outreach to ASEAN countries, leveraging its geographic proximity and cultural ties to strengthen mutual exchanges. Over recent years, Guangxi has built a reputation for its active role in fostering media collaborations with ASEAN countries, sharing stories of friendship, and facilitating people-to-people and cultural connections between China and its neighbors.

Liu Weiling highlighted China Daily’s collaboration with Guangxi to establish a comprehensive, diversified cooperation model. This model seeks to highlight Guangxi’s strategic significance in the Guangdong-Hong Kong-Macao Greater Bay Area while also showcasing the region’s role in building a China-ASEAN community of shared destiny and a China-Vietnam strategic community.

Yu Yunquan emphasized that Guangxi’s geographical advantages and cultural richness make it uniquely positioned for international communication. He stressed that Guangxi’s role would be instrumental in deepening international cooperation and enhancing mutual understanding, as the region continues to develop its international communication infrastructure.

Zhang Lei from China News Service spoke about the partnership between his organization and Guangxi to amplify the region’s achievements in economic and social development. The goal is to present Guangxi to the international community through accurate and engaging stories that reflect its progress and ambitions in high-quality development.

Akha Ongmenca, Director of Lao National Television, praised the long-standing partnership between Laos and Guangxi in the media sector. He expressed optimism about continuing this cooperation, focusing on innovation and achieving even greater results in the future.

Xu Bo, President of Guangxi Daily, outlined the efforts to establish a multi-dimensional communication platform through “Hello Guangxi,” which includes a website, client channel, and social media accounts. The aim is to create a unified and effective communication network that promotes Guangxi’s image internationally while telling China’s stories from a localized perspective.

At the event, several strategic agreements were signed, including one between the Publicity Department of Guangxi and China Daily and China News Service. These agreements, alongside new collaborations with foreign media, aim to expand Guangxi’s influence on the global stage.

Among the initiatives announced were plans for the 2024 Chinese and Foreign Media Tour, aimed at promoting the Land and Sea New Corridor in the West, a key part of China’s Belt and Road Initiative. This project is seen as critical to the development of China’s southwest region. Additionally, cultural exchange activities like “Meeting Lovely China and Magnificent Guangxi” will further promote mutual learning and cultural ties between China and ASEAN.

The launch of the Guangxi International Communication Centre marks a significant step in promoting China-ASEAN cooperation through media and cultural diplomacy, with a focus on fostering mutual understanding and deepening regional ties.

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