Canadian convenience store operator Alimentation Couche-Tard, which bought Topaz last year, said on Monday it would buy US convenience store chain CST Brands in a deal valued at about $4.4 billion, boosting its presence in southeast United States.
San Antonio, Texas-based CST is one of the largest publicly traded fuel retailers in North America and also controls the general partner of gas station company CrossAmerica Partners LP.
The company, spun off from Valero Energy Corp in 2013, also operates convenience stores and gas stations in Canada.
“With this transaction we would strategically strengthen our positioning in both the “sun belt” and the east coast of North America,” Couche-Tard chief executive Brian Hannasch said in a statement.
Couche-Tard will offer CST Brands shareholders $48.53 per share in cash, a premium of 2.15 per cent to the stock’s Friday close.
However, the offer represents a premium of 41.9 per cent to CST’s closing price on March 3rd, the last trading day before the company said it would explore strategic alternatives.
CST, which has been under pressure from activist investors JCP Investment Management and Engine Capital, said in March it would explore strategic alternatives.
– (Reuters)
