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Retail

Couche-Tard Agrees To Buy CST Brands In $4.4 Billion Deal

Alimentation Couche-Tard Inc. agreed to buy the gas-station chain CST Brands Inc. in a $4.4 billion deal, including debt, expanding its foothold in Texas and eastern Canada with the help of its biggest-ever acquisition.

Couche-Tard will pay $48.53 a share for CST, the Laval, Quebec-based retailer said on Monday in a statement. The offer represents a 42 percent premium over CST’s closing price on March 3, before the company said it would explore strategic alternatives.

The acquisition, the fourth announced by Couche-Tard this year, is the largest in the company’s 36-year history. It eclipses the 2012 purchase of Statoil Fuel & Retail ASA for about $2.8 billion, which established a foothold in Europe.

Couche-Tard, Canada’s biggest convenience-store company, operates more than 12,000 locations globally under brands such as Circle K and Mac’s. CST, meanwhile, has about 2,000 stores in the U.S. and Canada, most of which are in Texas, Quebec and Atlantic Canada.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

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