The Quebec-based convenience store chain has announced it will buy rival chain CST for US$4.4 billion ($5.78 billion).
CST is based in San Antonio, Texas and employs more than 14,000 people at over 2,000 locations throughout the south-western United States with an important presence in Texas, the US south-east region, the state of New York and eastern Canada.
The transaction is expected to close early 2017 and is subject to the approval of CST’s stockholders and regulatory approvals in the US and Canada.
Couche-Tard has also entered into an agreement with Parkland Fuel Corporation pursuant to which it would sell certain Canadian assets of CST after the merger for about US$750 million ($985.5 million).
Couche-Tard President and CEO Brian Hannasch said CST is an “excellent” and “well-positioned” company.
“With this transaction we would strategically strengthen our positioning in both the ‘sun belt’ and the east coast of North America,” he said. “Our teams are looking forward to meeting CST customers and welcoming them into the Couche-Tard family.”
