Alimentation Couche-Tard reportedly in talks to combine with U.K. retailing giant
Alimentation Couche-Tard Inc. is reportedly exchanging proposals in a multibillion-dollar combination with a British retailing giant that would feed its growth ambitions.
The Wall Street Journal recently reported that talks between the owner of Circle K and privately held EB Group would value the latter at about US$16 billion or more including debt.
The combined company to be headquartered at Couche-Tard's base in Laval, Que., would have over US$70 billion in annual revenue and 21,000 fast-food joints, gas stations and grocery stores in more than 30 countries.
The newspaper said people familiar with the matter warn that talks may not result in a deal.
Irene Nattel of RBC Dominion Securities says the combination of two of the world's largest convenience-store chains would be a "compelling potential transaction" and one that is consistent with Couche-Tard's five-year plan to double its size.
The analyst wrote in a note to clients that Couche-Tard has "sufficient balance sheet capacity" to do a deal of this magnitude but may look at different financing options, including a tranche of equity that could be a catalyst for a U.S. stock market listing.
This report by The Canadian Press was first published May 2, 2022.
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Provided Content: Content provided by Canadian Press. The Globe and Mail was not involved, and material was not reviewed prior to publication.