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Summary
- Couche-Tard announced that it entered discussions with Carrefour for a potential agreement
- Shares of Couche-Tard dropped by 2 per cent after the announcement
Alimentation Couche-Tard Inc. (TSE:ATD) announced that it is in talks with Carrefour SA (EU: CA) for a potential tie-up. The Canadian multinational operator of convenience stores, Couche-Tard informed that it has initiated a potential deal with Carrefour, the terms of which are still subject to discussions. It added that there is no certainty that these talks would result in an agreement. At the same time, it assured that it would keep the public informed of any further developments in this regard.
Carrefour, the French grocer has confirmed that it has been approached by the owner of Circle K (owned by Couche-Tard) for a preliminary discussion in a very friendly manner.
(Image source: ©Kalkine Group 2020)
Headquartered in Laval, Canada, Couche-Tard is a leading multinational operator of convenience stores. The company is also engaged in offering other products, including aviation fuel and energy for stationary engines. It has its presence across Canada, China, Denmark, Estonia, Indonesia, Ireland, Latvia, Lithuania, Mexico, Norway, Poland, Russia, Sweden, and the United States.
The network of Couche-Tard comprises of 9,261 convenience stores, including 8,085 stores with road transportation fuel dispensing throughout North America. It operates through a set of 18 business units in North America, which include 14 in the US and 4 in Canada. Couche-Tard is also a leader in convenience store and road transportation fuel retail across the Europe, with a total of 2,722 retail stores.
Other deals and acquisitions of Couche-Tard
2012- The company gained a foothold in Europe’s Scandinavian and the Baltic region through its purchase of Statoil Fuel & Retail ASA.
2016- Couche-Tard entered into an agreement to buy U.S. gas-station operator CST Brands Inc. for around US$4 billion.
2020- The company closed a deal to acquire all the issued and outstanding shares of Convenience Retail Asia Limited for HK$2.79 billion, or approximately $360 million.
Share Price Movement
The shares of Couche-Tard plummeted by 2.2 per cent after the announcement of the potential agreement, closing at $41.31 in Toronto on 12 January. The company was valued at almost $46 billion (US$36 billion).
