Canada's Couche-Tard in lead to acquire CST Brands: sources

Tue Aug 16, 2016 4:44pm EDT
 
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By Lauren Hirsch and John Tilak

NEW YORK (Reuters) - Canadian convenience store operator Alimentation Couche-Tard Inc (ATDb.TO: Quote) is in the lead to acquire CST Brands Inc (CST.N: Quote), a U.S.-based convenience store retailer, according to two sources familiar with the matter.

San Antonio, Texas-based CST owns and operates convenience stores and gas stations in Canada and the United States, and it controls the general partner of gas station company CrossAmerica Partners LP (CAPL.N: Quote).

CST declined to comment.

In a statement on Tuesday, Couche-Tard said it is in discussions "with third parties regarding possible business transactions."

"No formal agreements have been reached," it added.

Couche-Tard shares closed up 3.1 percent, while CST's stock ended the day 6.3 percent higher.

The move highlights the level of consolidation in the convenience store sector and reinforces Couche-Tard as one of the most acquisitive players in the industry.

The news comes about two months after Reuters reported that Couche-Tard and Japan's Seven & i Holdings Co Ltd (3382.T: Quote) had submitted offers to acquire CST.   Continued...

 
Pedestrians walk past a Couche-Tard convenience store in Montreal, April 18, 2012. REUTERS/Christinne Muschi