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, 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.

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 had submitted offers to acquire CST.   Continued...

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