Couche-Tard to buy CST Brands for $4.4bn

Canadian convenience store giant Alimentation Couche-Tard agreed to buy Texas-based convenience store and fuel retailer CST Brands for approximately $4.4 billion.

The acquisition, expected to be completed in early 2017 and subject to stockholder and regulatory approvals, would strengthen Couche-Tard’s foothold in both the “sun belt” and the east coast of North America.

Couche-Tard’s President and Chief Executive Officer Brian Hannasch said in a company release, “CST is an excellent company and is well positioned in the Southwestern United States with an important presence in Texas, Georgia, in the U.S. Southeast Region, New York and Eastern Canada.”

CST Brands has over 14,000 employees at over 12,000 locations in the United States and Canada. It also controls the general partner of CrossAmerica Partners LP, a fuel distributor present in more than 1,100 locations in the United States.

The takeover will further boost Couche-Tard’s leadership in the global convenience store market adding to its network of more than 12,000 stores spread across North America, Europe, and Asia. Majority of the convenience stores, known for Circle K and Mac’s brands, operate with petrol stations.

“With Couche-Tard, we will build upon an extensive and attractive convenience and fuel network with enhanced scale and global reach to best position the combined company for future growth. Importantly, our employees will benefit from new opportunities for career development as part of a larger, global company,” said Kim Lubel, Chairman, Chief Executive Officer and President of CST.