Couche-Tard enters Asia with the acquisition of Hong Kong c-store network

Retailing giant enters Asia with this acquisition as it looks to introduce its convenience and fuel proposition in the region.

Alimentation Couche-Tard Inc. announced that it has entered into an agreement to acquire Convenience Retail Asia (BVI) Limited for HK$2.79 billion ($360 million).

Circle K HK, a subsidiary of Convenience Retail Asia Limited, operates a network of Circle K-licensed convenience stores, with 340 company-operated sites in Hong Kong and 33 franchised sites in Macau. This transaction represents a significant milestone for Couche–Tard as it provides the company with a platform in Asia from which to launch its regional growth ambitions.

Circle K HK currently holds the second largest market share in Hong Kong, one of the most economically developed markets in Asia and most densely populated regions in the world, with meaningful room to grow organically.

“I look forward to welcoming their team members and stores into the Couche-Tard family and have no doubt that together we can reach millions more customers in Hong Kong and across Asia as we move forward in our journey to become the world's preferred destination for convenience and fuel,” said Alain Bouchard, Founder and Executive Chairman of Couche-Tard.

Under the terms of the agreement, Couche-Tard will acquire Circle K HK on a cash-free and debt–free basis. The final purchase price will be subject to working capital and other balance sheet adjustments.