Canada: Couche-Tard acquires CST Brands for $4.4 billion
Canada’s biggest convenience store company Couche-Tard has acquired rival chain CST Brands Inc. for $4.4 billion, according to a report in the Financial Post.
The acquisition, which is the fourth secured by the Canadian company this year, represents the largest in its history and aims to strengthen the firm's presence in Texas, USA and eastern Canada.
Commenting on the acquisition, Couche-Tard CEO Brian Hannasch said: “With this transaction we would strategically strengthen our positioning in both the ‘Sun Belt’ and the east coast of North America”.
Couche-Tard operates globally under brands such as Circle K and Mac’s, whilst CST Brands has a strong presence in the USA and Canada with more than 2,000 stores under brands such as Corner Store and Depanneur du Coin.
CST chairman, CEO and president Kim Lubel said: "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” and he added “We look forward to working closely with Couche-Tard to seamlessly complete the transaction and ensure a smooth integration".
The acquisition is expected to be completed at the beginning of 2017.
Source: Financial Post