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