LAVAL, Quebec -- Alimentation Couche-Tard Inc. has received approval from the Canadian Competition Bureau to proceed with the proposed acquisition of certain Imperial Oil retail assets in Ontario and Quebec. Following the bureau’s review, Couche-Tard has agreed to divest two sites, one in Ontario and one in Quebec.
In March 2016, Couche-Tard announced an agreement with Imperial Oil to acquire 279 Esso-branded fuel and convenience sites. Of these sites, 229 are located in Ontario—most in the Toronto area—and 50 sites are located in Quebec. All of the Quebec sites are in the Montreal area.
The agreement also included 13 land banks and two dealer sites, as well as a long-term supply agreement for Esso-branded fuel. Of the 279 sites, 238 are owned and 41 are leased.
Following this transaction and the consent agreement reached with the bureau, Couche-Tard’s network in Canada will consist of 1,719 sites.
The resolution will be registered as a consent agreement with the Competition Tribunal. Until completion of the divestitures, one of the sites to be divested and one of the other sites that will be acquired by Couche-Tard will be held and operated separately from Couche-Tard.
“We are very excited to announce this new addition to the Couche-Tard family and to welcome the great people at Imperial to our team,” said Brian Hannasch, president and CEO of Couche-Tard. “The sites we are acquiring are a great strategic fit for our business and combine some of the strongest brands in the country. We view this transaction as a transformative acquisition in Canada.”
Jean Bernier, Couche-Tard’s group president for global fuels and Northeast operations, said, “The addition of Imperial’s sites allows us to expand our network and reach more fuel customers than ever before. Together with the team at Imperial we [are] looking forward to creating an even greater offer and experience for our customers.”
The companies expect the acquisition to occur in October 2016. It will be financed from Couche-Tard’s available cash and existing credit facilities.
Couche-Tard’s retail network includes more than 12,000 locations, primarily under the Circle K brand.
In North America, its network consists of 7,863 convenience stores, including 6,474 stores selling motor fuel. It has 15 business units, including 11 in the United States covering 41 states and four in Canada covering all 10 provinces.
In Europe, Couche-Tard operates a broad retail network across Scandinavia, Ireland, Poland, the Baltics States and Russia through 10 business units. Of the 2,708 stores, most sell motor fuel and c-store products, while the others are unmanned automated fueling sites. In addition, under licensing agreements, more than 1,500 stores are operated under the Circle K banner in 13 other countries and territories worldwide (China, Costa Rica, Egypt, Guam, Honduras, Hong Kong, Indonesia, Macau, Malaysia, Mexico, the Philippines, the United Arab Emirates and Vietnam).
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